Vardy has missed Leicester's last four matches due to suspension and then the birth of his fifth child.
The England striker's last appearance came in the 2-2 draw against Stoke on 17 December, a game in which he saw red for a challenge on Mame Biram Diouf.
The red card meant that he was forced to sit out the next three matches, and he also missed the Foxes' FA Cup win over Everton last weekend due to the birth of his baby boy.
"He’s very happy," said manager Ranieri. ‘He has five now. I ask him what want to do in future, be a manager and have 11? He says he’s stopped now! He is ready to play".
Vardy and Co will face Chelsea on Saturday as Antonio Conte takes his side to face the Premier League champions at the King Power Stadium.