Jamie Vardy has been told by his boss that sticking with Leicester will help his chances of playing at Euro 2016.
The Premier League's top scorer has become hot property after his remarkable streak of goals, having netted in nine straight games.
He has also forced his way into the England team but missed the games against Spain and France this month with a hip injury, making him a doubt for the trip to Newcastle at the weekend.
Having earned four caps since his debut in the summer, the 28-year-old has been warned that moving away from the King Power Stadium could hamper his career prospects with the European Championship on the horizon.
On Leicester being the best place to nurture his skills, Ranieri said: "Of course, he's intelligent, he knows very well that now, at Leicester, there's a very good group, A positive group who play together.
"That's good for him and the other players to show they have quality in this team. Maybe next season they could choose the best solution - but then you have to see also where Leicester is at the end of the season."
With the inevitable speculation concerning a player in red-hot form, Ranieri is keeping calm on Vardy's future. He stated there was no new contract on the table after his striker signed a new four-year deal last summer.
"We work around the speculation. Jamie and his agent say he is very happy here," Ranieri said.
"We want to grow up together, and I hope we can continue all together."
Vardy will be assessed by the Foxes ahead of Saturday's game and the Italian boss admitted his star man was disappointed to miss out on England duty last week.
"Yes, it was hard for him not to play, he wants to play in every game," Ranieri added. "There was no persuasion. It was the England doctor who made the decision, there was no hassle."