The Spain defender feels that his team-mate is happy at Real Madrid despite persistent rumours of a move to Paris Saint-Germain, arguing that nobody could afford him anyway
The Portuguese attacker has been linked with a move to Paris Saint-Germain as negotiations over a new contract at the Santiago Bernabeu drag on but the defender believes that their star man is happy in the Spanish capital.
"You have to see which club has €1bn to pay what he is worth," the defender told reporters when quizzed on the French side's interest in the former Manchester United man.
"He should be in Madrid and he is happy here."
Madrid take on local rivals Atletico in the Copa del Rey final on Friday and Ramos admits that failure to beat Diego Simeone's side would put a negative spin on the whole season.
"It would be a failure in terms of titles," he conceded. "There are different ways of losing. If you have to lose, it should be with the same attitude as we had against Borussia Dortmund.
"There are no favourites in the final. After the Champions League, this competition is worth a little more. Injuries? There are no excuses. You play in finals to win."
An injury to Raphael Varane means that Pepe is likely to partner Ramos at centre-back but the Spaniard is happy to play alongside anyone.
"It's not my call. I'm not a coach. We all want to play - Pepe included," he added. "He trains with the team and the squad depends on the coach."