Arsene Wenger says he respects Jamie Vardy’s decision to reject Arsenal in favour of staying at Leicester City to sign a new four year contract.

The Gunners had activated the striker’s £20 million release clause but the England international stalled on his decision saying he would give a response after EURO 2016.

However, Leicester confirmed on Thursday that a new four-year contract had been agreed with the striker.

It is believed that the England striker will sign a deal worth £100,000-a-week with the Foxes.

“I think Leicester have made a statement and Vardy will stay. We were on the case and interested, but not more than that,” said the Arsenal manager.

Jamie Vardy scores a penalty against Arsenal

Jamie Vardy scores a penalty against Arsenal. The Gunners won 2 – 1 thanks to Danny Welbeck’s winner

“He has decided to stay at Leicester and good luck to him.

“He came late to the game and in fairness Leicester bought him from Fleetwood and he has been successful. He is 29 and he has chosen to stay at Leicester. You have to respect that.”

Vardy, who netted 24 goals last season, had concerns about playing regularly at Arsenal and Leicester countered with a double-your-money deal.