The 27-year-old joined Leicester in the summer of 2012 from Fleetwood Town and has netted 21 times in 70 appearances for the club, including 16 goals last term as the Foxes won the Sky Bet Championship title.
Vardy, who was named Players' Player of the Year by his Leicester team-mates for last season, told lcfc.com: "I'm over the moon
We all know that the club wants to keep improving and stay in the Premier League, and I definitely want to be a part of that.
"Everyone knows the way that I've come back into football (from non-league), and we managed to get promoted last season, but now it's all about making sure that we stay in the Premier League.
"(Manager) Nigel Pearson brought me here and he wants the club to maintain their Premier League status
He was a big influence (on him signing a new deal) and now I've just got to repay him on the field."
Vardy joins Danny Drinkwater, Matty James, Liam Moore, Wes Morgan, David Nugent, Jeff Schlupp, Kasper Schmeichel, Gary Taylor-Fletcher and Marcin Wasilewski in signing new deals since winning Leicester secured promotion in April.
Source : PA
Source: PA