The striker has failed to join up with the rest of his squad for a pre-season training camp in Austria and has refused to return to Ukraine following the Malaysia Airline MH17 crash.
Blanco told Ole: "With what happened I did not feel like returning to Ukraine. These are not normal times. My decision is to stay in Buenos Aires. I will not return to Ukraine."
Blanco is among six South American Shakhtar Donetsk players refusing to return to Ukraine.
Leicester City are reportedly tracking Blanco and after recognising the midfielder could be available for around £2m, the newly-promoted club are considering an offer, according to the Daily Mail.