Rae has admitted a switch to the Foxes could be a good move at this stage in his career.
“He is [just as good as Dembele]. Look at the goals he has got this year. He is 22 and the development he has undergone in the last year has been remarkable,” Rae told the Glasgow Evening Times.
“I think he will go to a stepping stone club.
“A club like Leicester would be a good move. Look at [Virgil] Van Dijk and [Victor] Wanyama – that is the career path Morelos will be looking to take.
“He won’t go from Rangers straight to a top four or top six team.”