Vardy, who was at the top of the scoring charts in the Premier League last season as his side finished 5th, will stay at the club until 2023.
The Telegraph is suggesting he will put pen to paper on a deal in the coming days.
The 33-year-old is in good form and does not have any international commitments, so he hopes to prolong his career into his mid 30s.
He has been with Leicester since they got back into the Premier League, winning the Premier League title in 2016.
Need a VPN? Or seeking to switch? Then support Tribal Football by clicking here to sign up with our official partners NordVPN. Not only will you receive the best VPN experience, but also great discounts by signing up via Tribal Football. Thanks for your support!