The 33-year-old Vardy won the Golden Boot last season for his 23 league goals as Leicester City finished fifth and earned a spot in next term’s UEFA Europa League.
“I know that I’ve got so much more to achieve with this team. So, it’s a special feeling to be able to commit my future to Leicester City once again,” said Vardy, who became the first Leicester City player to score 100 Premier League goals last season.
“We’ve a fantastic team that I believe is capable of getting even better and I can’t wait to see what we can achieve together in the next few years,’’ he said.
Vardy has scored 103 top-flight goals in over 300 appearances for Leicester City since joining them from Fleetwood Town in 2012.
He played an influential role in Leicester City’s unexpected league title win in the 2015/2016 season, scoring 24 goals.