The Algerian winger has committed his future to the Foxes until 2020 after being linked with a possible departure for much of the summer.
Mahrez, 25, had been a key target for Arsenal during the transfer market but has opted to tire himself down to the King Power Stadium for the next four years.
It is understood that there is no buy-out clause in Mahrez's contract which is expected to land him £25million over the four years, according to The Sun.
He's signed! #lcfc magician @Mahrez22 commits future with new deal to 2020!
Full story: https://t.co/t2PrGpmOJopic.twitter.com/cRSTwNJq5a
— Leicester City (@LCFC) August 17, 2016