Ramos has spent 15 seasons with the Spanish giants, making close to 650 appearances in that time, but is due to be out of contract in a year's time.
The 34-year-old was on target for the third time in four games in Madrid's 2-0 win over Mallorca on Wednesday, highlighting his importance to Los Blancos at both ends of the field.
Zidane is hopeful that fresh terms can be agreed with Ramos to put an end to the uncertainty over his future.
"Sergio belongs here as a player," he told reporters. "He's been here for years and he should retire here. It's what I think and I'll stand by it."
Madrid's victory over Mallorca moved them back above Barcelona at the top of La Liga with seven games to go.