The report claims that the Foxes are intent on keeping hold of the striker and will look to renew his deal despite evidence suggesting he has already agreed terms to join Arsenal.
Arsenal are keen to bolster their squad this summer following their failed Premier League title attempt and Vardy has seemingly been earmarked as the man Arsene Wenger wants to lead his attack.
The 29-year-old offers plenty of pace, directness and energy yet it is his ability to play on the last defender and run in behind which would offer the North London club a different type of threat.
The Gunners are said to have triggered a £20 million release clause in Vardy’s contract and personal terms on a potential four-year deal worth in excess of £100,000 per week has been provisionally agreed.
However, Leicester will not want to lose their star man as they prepare for a Champions League campaign next season and they are willing to offer him yet another new deal in a bid to keep him on.
The former Fleetwood Town man only signed a new deal last February which runs through until 2019, yet in a last-ditch attempt the Foxes will again up his salary which currently stands at just over £60,000 per week, as mentioned in the report.
Vardy netted 24 Premier League goals last season as Leicester won the title, and his perfect season has culminated in a trip to France as the England man looks ahead to Euro 2016.