Vardy has two years remaining on his current contract with the Foxes, but his recent form has seen him linked with some of the biggest clubs across Europe.
The likes of Real Madrid, Tottenham Hotspur and Liverpool have all been credited with holding an interest in the striker by ESPN, but Ranieri is keen to tie the striker down.
“He is happy with us, he is happy with his contract and that is important - maybe at the end of the season [he will be offered a new deal]," Ranieri said.
Vardy has scored 10 goals in the Premier League to date, and he currently leads the scoring charts in the division.
The former Fleetwood Town man has fully adapted to playing in England's top-flight, and appears to be oozing with confidence every time he gets an opportunity.
Vardy has now scored in his last seven consecutive matches, and his brilliant form has seen him earn his first three England caps.
Vardy's goalscoring has been a major reason behind Leicester's blistering start to the new campaign, which has seen them climb into fifth place in the Premier League table.