Vardy only signed his last contract at the Foxes in February and scored 24 goals last season as Claudio Ranieri’s side won a shock title by 10 points.
A club statement read: “Leicester City have agreed with the representatives of Jamie Vardy to extend the England international’s contract with the Premier League champions for a further four years.
“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.
“There will be no further comment from either the club or the player on this matter until the conclusion of the tournament.”
Vardy scored in England’s 2-1 win over Wales last week and started in Monday’s 0-0 draw with Slovakia which saw the Three Lions finish second in Group B. They will play Iceland in the last 16 on Monday.
Arsenal boss Arsene Wenger conceded at the weekend he expected Vardy to stay at the Foxes, who he joined from Fleetwood in 2012, despite the 29-year-old holding talks with the Gunners.
Leicester had been determined to keep last season’s Football Writers’ Player of the Year and are only focused on strengthening their squad ahead of their first-ever Champions League campaign.
Riyad Mahrez and N’Golo Kante remain in demand but the Foxes do not want to sell.
They have targeted Watford captain Troy Deeney and had a second bid of £25million rejected by the Hornets at the weekend.