Foxes are desperate to keep keeper Schmeichel Jr, 32 — who joined the club in 2011 and helped them to the Premier League title in 2016.
"They've got good players they just don't have the manager who can get the best out of them.
"Once they get everything sorted out — and I leave it to you to interpret what that means — you'll see Leicester maybe in fifth to eighth place where they belong."
But his father added: "Of course he wants to challenge himself like any other player.
"But I don't think he wants to go to Europe.
"I think he loves England too much, I think he likes the Premier League too much, so it's a difficult one."