Le Saux believes Chelsea have offered new terms to Lampard, but he is baulking at committing to next season.
"Chelsea have had quite a hard time in the press with everyone saying they are mad to let him go and should definitely offer him a new contract," Le Saux told talkSPORT.
"Frank has a professional decision to make and that's what we, in the media, and the fans forget. He's got two or three years left playing. Does he go further afield and earn vast amounts of money and secure his financial future? Or does he look at a longer-term plan and think 'well, I will sacrifice some of the financial rewards to cement the final years of my career playing for a top class team'?
"That's a decision he has to make. I know what I would do. When you look back over your career you look at those landmarks and think, 'well, that is what my career was about'.
"Whatever decision he makes it will be based on his real feelings and you have to respect that because he's been an incredible player.
"He's in a great position because he's got so many options. He showed against Brazil how valuable he is as a player."