It is understood that Arsenal are interested in acquiring the 25-year-old’s services, but the reigning Premier League champions are determined to keep hold of the PFA Player of the Year as he scored 18 goals and notched up 10 assists for them in all competitions last season.
Not long ago Ranieri spoke of how critical it would be for Mahrez to stay and it appears having been in constant contact with Mahrez he has not seen any signs that the Algeria international wants to leave Leicester.
"If he wants to sign a new contract it is OK. For me it is important that this season he stays with us," Ranieri told reporters. "He is very happy. I see him every day and he has never talked to me about something strange. I am confident with him. This is experience.
"The club is working very well and I think the players want to stay with us to try and to improve on last season. We know that is very difficult but we are ambitious. Then it is important they sign, stay with us and gain experience in the Champions League. Then we will see."
If Leicester to end up losing Mahrez, he will be the second high-profile player they will have lost this summer after midfielder N'Golo Kante joined Chelsea for a reported fee of £32 million.