Gazzetta dello Sport claims Vardy, 39, is considering rejecting a contract extension at Cremonese in favour of a return to the King Power Stadium, potentially combining playing duties with a coaching role.
Vardy signed a one-year deal with Cremonese last summer as a free agent after 13 years and 200 goals in 500 appearances for Leicester. The extension clause at the Italian club is only triggered if they remain in Serie A — a situation that is far from certain, with Cremonese sitting just a point above safety with two games to play.
The timing coincides with Leicester's own desperate circumstances. The Foxes have just been relegated to League One following back-to-back falls from the Premier League, finishing 23rd in the Championship with a six-point deduction for financial breaches compounding their woes.
Vardy has scored six goals and provided two assists in 27 Serie A appearances this season, winning the competition's Player of the Month award for November — the first Englishman to do so.
His wife Rebekah moved quickly to dismiss the reports, posting on social media that the Leicester return story was "fake news."
Reliable sources quoted by Ben Jacobs have also said there is nothing to the claims at this stage.
Whether or not a return materialises, the contrast is stark. When Vardy lifted the Premier League title with Leicester in 2016, nobody could have predicted the club would be playing third-tier football a decade on.