Ranieri has led Leicester to the brink of an improbable title triumph.
They report that either the club or manager can trigger a termination clause for a 'modest sum' at the end of the season. It was insisted the clause would be in the contract after Ranieri had not managed in the Premier League for 11 years, and hadn't had the best of times managing the Greece national side.
Ranieri still has two years left on his current deal and is understood to be happy at the King Power Stadium - where he has guided the Foxes to a five point lead in the Premier League title race with just eight games remaining, a remarkable achievement which is likely to go down as the biggest title upset since Nottingham Forest in 1978 should his side finish the job.
There have been suggestions that the 64-year-old could be offered the post of coach of the Italy national side after Antonio Conte confirmed he would step down after the European Championships in France this summer.
The new deal that Ranieri is likely to be offered will see a salary increase of £1.5 million while there are measures in place to offer members of his bacckroom staff new contracts.
After a season where the club have taken the league by storm, it's of little surprise they will want such a clause removed, and Ranieri tied down to a more secure deal.
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