The former Fleetwood Town striker had his release clause met by the Gunners but has opted to stay at the King Power Stadium for the next four years
Leicester City have agreed a new four-year contract with striker Jamie Vardy, with the England international having turned down a move to Arsenal.
The Gunners activated the forward’s £20 million release clause on the eve of Euro 2016 as Arsene Wenger looked to provide competition for Olivier Giroud at the Emirates Stadium.
But the 29-year-old has rejected the chance to join the north London outfit and has instead committed his future to the club with whom he won the Premier League last season.
“Leicester City have today agreed with the representatives of Jamie Vardy to extend the England international’s contract with the Premier League champions for a further four years,” a Leicester statement read.
“Both parties hope that this announcement will end recent speculation regarding Jamie’s future and confirm his long term commitment to Leicester City Football Club.
“Jamie will continue to focus all of his efforts on trying to achieve success with the England team at the European Championships in France.”
Vardy scored 24 goals as the Foxes won their first ever league title, with his form earning him and call-up to this summer’s Euros.