Arsenal are ready to offer £37million for the PFA Player of the Year, but Leicester have prepared to up his £40,000-a-week deal, which has two years to run, to £100,000. That will bring him in line with the increase England striker Jamie Vardy got this summer after the title win.
Ranieri, who has already lost midfielder N’Golo Kante to Chelsea this summer, said: “Riyad will stay with us. He is very happy. I see him every day and he has never talked to me about anything strange.
“I am confident about him. This comes from experience. Champions have a lot of rumours and speculation about them, and you have to be focused on your job. The speculation is not real.
“If he wants to sign a new contract it is okay with me. It is important he stays with us. Riyad wants to stay, because he wants to continue with us to keep having the experience. Everything else is just speculation.”