Vardy will spend ten years at Leicester if he sees out the full contract and is already the tenth all-time top scorer for the club.
The England international starred in Leicester’s title winning season in 2015-16, scoring 24 goals, including a record 11 in a row, as Claudio Ranieri’s guided the Foxes to a historic title win.
Arsenal triggered Vardy’s £22m release clause in summer 2016, but the forward rejected a move to Arsene Wenger’s side and committed his future to Leicester.
“Everybody knows how I feel about playing for this football club and it’s a great feeling to know that I can look forward to another four years as a Leicester City player,” he told the club’s website after pledging his future at Leicester until 2022.
“The journey that me, the team and the club have been on in the past few years has been incredible. Going into the new season, it’s an exciting time for Leicester City and I’m delighted to be part of it.”
After arriving from non-league Fleetwood Town, the 31-year-old has scored 88 times in 233 and was the club’s player of the season in Leicester’s promotion to the Premier League in 2013-14.
Under Nigel Pearson, Vardy inspired Leicester’s miracle comeback as the relegation-doomed side picked up 22 points in the last six weeks of the season to survive in their first year back in the Premier League.
Vardy bettered Ruud Van Nisterlrooy’s record of 10 consecutive Premier League goals in November 2015, which gave Leicester a platform to win their first league title.
He has 26 international caps and played in the 2016 Euros and 2018 World Cup under Roy Hodgson and Gareth Southgate.
In 2016 Vardy launhced the V9 Academy, with the aim of unearthing hidden non-league talent to follow in his footsteps.
Leicester added Filip Benkovic, Jonny Evans, James Maddison, Ricardo Pereira, Caglar Soyuncu and Danny Ward in the summer transfer window, after Riyad Mahrez, Ben Hamer and Robert Huth left.