Vardy netted 24 goals for Leicester City in 2015-16 season. PHOTO: AFP
Vardy, who scored 24 goals in Leicester's remarkable run to the title, had been linked with a move to Arsenal.
Euro 2016: Kane should fear being replaced by Vardy, says Shearer
"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," the club said in a statement.
"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."
Vardy named Premier League Player of the Season
Vardy is currently part of England's Euro 2016 squad and scored an equaliser in his country's 2-1 victory over Wales.
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