Eriksson told BBC Radio Leicester: "If he wants to stay he is more than welcome, but if he wants to leave then that's okay.
"I would think they [Hull and Fryatt] are now talking terms."
Fryatt was part of the Leicester side which won promotion from League One in the 2008/09 season, scoring 27 goals in 46 matches.
"He will now think about his situation - if he wants to leave we will help him with that, if he wants to do that," Eriksson added.
"How negotiations are going I do not know, as it is not really my business."
Source: BBC Sport
Source: BBC Sport