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Arsene Wenger respects Jamie Vardy's decision to remain with Leicester despite attempting to bring him to Arsenal.
Vardy looked poised to move to the Emirates after the Gunners triggered the £20million release clause in his contract, but the striker has agreed a new four-year deal to remain with the Premier League champions.
He will put pen to paper on the agreement following the conclusion of Euro 2016 and Wenger says he respects the 29-year-old's decision to stay with the club.
"I think Leicester have made a statement and Vardy will stay. We were on the case and interested, but not more than that," Wenger told beIN Sports.
"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."
Arsenal have also been linked with a move for Vardy's Leicester team-mate N'Golo Kante.
The France international impressed during his first season at Leicester and Wenger has refused to rule out a move for the player.
"It is very difficult to talk about that at the moment. Kante is on the list of many clubs. It is an area where we have many players," Kante added.
"We will see what happens in the next two or three weeks. It looks like Leicester have bought a player from Nice [Nampalys Mendy] with similar qualities to Kante, so whether they envisage to lose him or not I don't know."