The 24-year-old Croatian has been limited to just five first team appearances for the Foxes this campaign.
“Andrej has the European Championships to think about this summer, so it's important for him that he has the opportunity to play," said Ranieri.
“He is a fantastic player and a great professional but, in this moment, we have other strikers that are playing well. I spoke with him to understand what he wants to do and a loan is a solution that works for everybody. We will watch him closely at Hoffenheim."
BREAKING: Andrej Kramarić has joined Hoffenheim on loan until the end of the season - https://t.co/PpuXH9Iy7opic.twitter.com/WlPUAmhh4U
— Leicester City (@LCFC) January 20, 2016