According to BBC Sport, Vardy is expected to make a decision on his future before England leave for France for the Euro 2016 finals later this morning.
Arsenal have reportedly agreed a deal with Leicester over the transfer of the England international striker.
Cascarino has suggested that the 29-year-old will have to join the Gunners as it is too big a move to turn down.
“Unfortunately for Leicester, Vardy just has no choice — he cannot say no when a club like Arsenal comes knocking,” Cascarino wrote in The Times.
“I have been in that situation myself and there must be 50 players that I played with who were approached by bigger clubs and just could not say no.”
Vardy was one of the best players in the Premier League this past season and was key in Leicester winning the title.
The England international striker scored 24 goals and created 46 chances in 36 league matches for Claudio Ranieri’s side.
While Leicester won the league title during the 2015-16 campaign, Arsenal are a bigger club, and the chance to play for the North London outfit could be too tempting for Vardy.