England striker and Arsenal target Jamie Vardy has agreed a new deal with Premier League champions Leicester.
The Foxes said the 29-year-old, whose goals helped the club claim a shock title success last season, will sign an extended four-year contract.
"Both parties hope this announcement will end recent speculation regarding Jamie's future," a club statement said.
Vardy was the subject of a reported £20m bid from Premier League rivals Arsenal before the start of Euro 2016.
That bid activated a release clause in his contract, with the Gunners offering him a deal reported to be worth £120,000 a week.
Leicester responded with an offer said to be worth £100,000.
Vardy, who joined the Foxes from non-league Fleetwood Town for £1m in 2012, had already signed a new three-year deal with the club in February.
He is currently on duty with England at Euro 2016 in France and scored in the 2-1 win over Wales in the group stage.
Roy Hodgson's side eventually finished second in Group B to make it through to the last 16, where they will face Iceland on Monday.
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