Vardy, 27, becomes the latest in a series of key players to commit his future to the Foxes, having played a significant role in the Club’s promotion to the Barclays Premier League.
The Sheffield-born striker has enjoyed a meteoric rise to the top flight of English football, having helped fire Fleetwood Town to the Football Conference title just over two years ago.
Since joining Leicester in the summer of 2012, Vardy has scored 21 times in 70 appearances, including 16 goals in the Foxes’ march to the Football League Championship title in 2013/14.
Jamie 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.
“Nigel Pearson brought me here and he wants the Club to maintain their Premier League status. He was a big influence [on me signing a new deal] and now I’ve just got to repay him on the field.”
Vardy’s pace, aggression and quality in front of goal were major assets to City during last season’s unforgettable Championship triumph – a campaign which saw him named Players’ Player of the Year by his Foxes team-mates.
His 16 goals for the campaign included a tone-setting winner at Middlesbrough on the opening day, a season-defining strike in a 1-0 win at Queens Park Rangers in December and a streak of five goals in four games during February and March that took the Foxes out of the reach of the chasing pack.
Vardy joined City from Fleetwood Town in July 2012, having scored 34 goals for the Cod Army in their surge into the Football League during the previous season.
He scored prolifically in non-league football for both Stocksbridge Park Steels and Halifax Town before signing for Fleetwood in the summer of 2011.
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 terms since City secured promotion to the Premier League in April.