The Frenchman is not prepared to write off the former Manchester City forward, who has scored just once for the club this term.
Iheanacho joined Leicester in the summer but has made just two Premier League starts and had been linked with a transfer window move.
Nigeria boss Gernot Rohr said earlier this week he expected Iheanacho and international team-mate Ahmed Musa to leave the King Power Stadium because of their lack of action but Puel dismissed any exit talk.
Puel said: "We don't know about what the national trainer said. We will see. We have discussions with different players. For example Iheanacho is a young player, arrived this season, and he will stay with us.
"I cannot talk about details about players. It is important to have a good balance in the team and have a good game time for the players.
"Iheanacho is a young player, he signed this season with us and we have to develop him. I hope he can have more game time in the second half of the season."
Puel refused to commit on the future of Islam Slimani, with the £30million record buy interesting Besiktas.
If Slimani leaves, Leonardo Ulloa will stay at the King Power Stadium. But should the Foxes fail to sell the Algerian international then Ulloa is likely to go on loan with clubs in Spain and England interested, including Aston Villa.
"I can't give all the details of individual players to you," Puel said. "Yes, for Iheanacho there has been a lot of speculation. He is a young player who arrives in a good team where there is competition and he needs to keep working and improve."
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