Leicester City manager Claudio Ranieri has admitted that he is "very happy" to have seen star striker Jamie Vardy turn down a move to Premier League rivals Arsenal.

The England international surprised many last month when opting to snub the Gunners' £20m approach and instead pen a new deal at the King Power Stadium.

Ranieri believes that Vardy's rags-to-riches tale at Leicester was behind his decision to stay for at least another season, as well as the lure of the club's first ever foray into Champions League football.

"I am very happy," he is quoted as saying by The Mirror. "He enjoys it a lot here – he is a king and he is happy. Thank you to him and his family because it was important. He made a fantastic choice. I believe in the man.

"You imagine, he came from a little team and came right to the top, and then a big team wants you but you stay - that is unbelievable. It is fantastic because Jamie is one of our points of reference.

"Of course, all his teammates are happy and he gave us a lot of energy to have another good season. Maybe it is because he started from the bottom and now we are his family. It is the first time in the Champions League too and he wants to stay together."

Vardy scored 28 goals in 48 appearances for club and country in all competitions last season, including a vital goal for England in the Euro 2016 group-stage meeting against Wales.