Rivals fans rejoiced as striker chose to stay with Leicester City.
England's Jamie Vardy in action
The tournament gave Vardy moment to pause and weight up his options, while Leicester could put together a new contract offer, which appears to have clinched it.
Vardy won the Premier League with Leicester last season and his decision to remain with the club continues his fairy tale and lets him continue in the Champions League with the Foxes next season.
Jamie Vardy celebrates scoring for Leicester City to equal the record for scoring in consecutive Premier League games
Nonetheless the rejection is a tad humiliating for Arsenal who had gone into the scenario as the aggressors, hoping to snatch Vardy away from Leicester and prove their financial and sporting might.
This has backfired, and while they will simply move on to targeting another striker, the news certainly caused some amusement among rival Tottenham fans - including former chairman Lord Sugar - expressing their views that Arsenal do simply do not have the pull they either think they do, or once did.
Arsenal manager Arsene Wenger
Here is a look at the reaction via Twitter...
I was hoping Vardy signed for Arsenal so I could hate both more #COYS— Adhithya (@adhithya35) June 23, 2016
Look at all the Arsenal fans claiming they don't care Vardy rejected them, keep telling yourself that haha.— Cam Fava (@fava112) June 23, 2016
Vardy's only gone and mugged off Arsenal hahaha— Ben Wiggins (@Wiggo24) June 23, 2016