The Gunners triggered Vardy's release clause earlier this month but today Leciester confirmed he had agreed a new four-year deal.
"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," a statement read.
"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 Championships in France.
"There will be no further comment from either the Club or the player on this matter until the conclusion of the tournament."
GETTY
Jamie Vardy snubbed Arsenal and signed a new four-year deal with Arsenal
And the MEN report that United remain confident of landing a 'statement' name.
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Liverpool have entered the race for Nani, according to reports in Turkey.
Nani has impressed at Fenerbahce last season and is being monitored by Everton.