Ipswich Town boss
"I think Tom will have his heart set on the Premier League and I think he'll get that," he said to BBC Suffolk Radio.
"If Leicester are going to sell him, there'd be a lot of takers."
"Tom has been brilliant and we've all loved him, everybody's really appreciated what he's done, but I think he has his heart set on Premier League football and why wouldn't he?"
Ipswich ensured that they will still be playing Championship football by beating Newcastle 3-1 on Monday, and McCarthy is expecting a host of changes next season.
"It's been tentative before being completely safe," he added. "I'll sit down and talk to (owner) Marcus (Evans) now about what we want to do and hopefully we can come up with something.
"But there's a real opportunity to freshen it up because there are a lot of players out of contract and we've quite a few players on loan.
"Do they want to stay? Do we want them? Can we have them? Can we sign them? There's all those things. We'll be losing a few players."