"A lot of teams will want to play against us because we are in Europe for the first time and they think we are underdogs," the Italian told British media.
"We are underdogs but we are dangerous. Underdogs can be dangerous teams."
On the coaching side, Ranieri's assistant, Steve Walsh, who is also head of recruitment, told the BBC that he had agreed a new deal with the champions.
Walsh has been largely credited with bringing in Riyad Mahrez and N'Golo Kante from the French second tier, while another of Ranieri's assistants, Craig Shakespeare, has also agreed fresh terms.
"We've not signed but it's all agreed," former Chelsea scout Walsh was quoted as saying by the BBC.
(Reporting by Simon Jennings in Bengaluru; Editing by John O'Brien)
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