Thursday 23 June 2016 19:56, UK
Jamie Vardy has rejected Arsenal to stay at Leicester on a new contract - although the Premier League champions remain keen to sign Watford striker Troy Deeney.
The Premier League champions have agreed a new four-year deal with Vardy, who will sign once England's Euro 2016 campaign is over.
Sky Sports News HQ understand Vardy's new deal will not affect Leicester's pursuit of Deeney. The Foxes have already had two bids turned down by Watford - the last was for £25m - and are likely to return with an improved offer.
Arsenal triggered a release clause in Vardy's contract earlier this month, but Arsene Wenger admitted at the weekend the transfer was dead.
Leicester announced Vardy's decision in a statement which read: "Leicester City have today (Thursday) 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 Championship 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 was named Football Writers' Association Footballer of the Year last month after his 24 goals helped Leicester pull off a 5,000-1 title success, the first in the club's history.
The 29-year-old scored his first international goal in a friendly against Germany in March and was on target in last week's win over Wales in France.
