Kante enjoyed a sterling 2015/16 campaign with the Foxes as he helped them to their maiden Premier League title under the guidance of Ranieri.
The Frenchman has since been the subject of widespread speculation, with Chelsea reportedly favourites to land the Frenchman after making a massive bid on Thursday.
However, the club have since offered the 25-year-old a new and improved deal that would see him remain at King Power Stadium until 2019.
While the Italian would prefer Kante to stay, he understands the prospect of a new opportunity elsewhere may be in the player's best interest.
"I know one thing, we have offered a new deal of a contract to him," Ranieri told the Leicester Mercury.
"He wanted to wait because he wanted to finish Euro 2016. Now I hear there is so much speculation behind him.
"I don't want to lose him. I don't want to, but I could understand if he wants to go. At this point, I hope the team bring the maximum.
"I don't know about the money, I am not a manager, just a coach, so I don't speak about money. I say what I feel, I want him here."
Ranieri refused to speak on whether Chelsea had put in a bid for Kante, but says he expects clarity on the situation soon so that he can continue with preperations for the new season.
"I don't want to speak about this kind of speculation. I speak to him but I can't tell you. I speak often with him.
"I would like now to be sure who stays with me or not, because now we start the friendly games and I have to manage change and try to do something.
"I would like to understand if he would like to stay with me or no," he concluded.