Vardy had been linked with a possible move to Manchester United.
The 35-year-old, who joined from non-league side Fleetwood Town
in 2012, is third on Leicester's all-time goalscorer list with
164 strikes from 387 games in all competitions.
"I'm obviously over the moon. Once I heard it was something the
Club was looking at, there was only one thing that was going to
happen, and I was going to sign it," Vardy told https://www.lcfc.com/news/2749628
the club website.
"The decision was easy. I've been here long enough now that I
feel like part of the furniture."
Vardy, who scored 17 goals across competitions last season, was
instrumental in guiding Leicester to the 2015-16 league title
and also won the FA Cup in 2020-21.
Leicester, winless in their opening two league games this
campaign, host Southampton later on Saturday.
(Reporting by Dhruv Munjal in Bengaluru; Editing by Hugh Lawson)
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