Arsenal remain confident of signing Jamie Vardy despite Leicester City fighting to keep the England striker, a source close to the London club has told ESPN FC.

Sources confirmed on Friday that Arsenal have triggered Vardy's release clause at Leicester and that the 29-year-old was due to have a medical on Sunday.

A source has told ESPN FC that Vardy has now undergone the first stage of his medical but Leicester are reluctant to lose him and have made a counter offer in effort to convince him to stay.

Vardy was considering his options on Monday as he prepared to fly out to France with his England teammates ahead of Euro 2016, but a source close to Arsenal expressed confidence that he will commit to the transfer.

Jamie Vardy will fly out with the England squad to Euro 2016 on Monday. Catherine Ivill - AMA/Getty Images

Arsenal are ready to offer Vardy lucrative personal terms and a long-term deal to persuade him to leave the English champions.

The source added that, although Arsenal would like to complete the signing as soon as possible, they will not put any extra pressure on the player.

Arsene Wenger has already tied up a deal for midfielder Granit Xhaka this summer but said last month that he planned to make three signings ahead of the new campaign.

Vardy scored 24 Premier League goals for Leicester last season as they finished 10 points clear of runners-up Arsenal in the table.