Arsenal activated a £20million release clause in the 29-year-old’s Leicester contract last week after his 24 goals helped Leicester to the Premier League title.
The Gunners are thought to have offered Vardy a £120,000-a-week deal to lure him away from the King Power Stadium, where he currently earns £70,000 a week.
Reports revealed earlier this week that he has verbally agreed to join the north London club, but there appears to be another twist in the tale.
Reports say Vardy is now leaning towards rejecting Arsenal’s lucrative approach in favour of a Leicester stay.
The Foxes are thought to have responded to Arsenal’s move by offering Vardy a new and improved deal worth £100,000 a week as they look to keep him ahead of their first foray in the Champions League.
The England international will not inform either Arsenal or Leicester of his decision until after this summer’s Euro 2016 campaign in France
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