Mahrez was the PFA Player of the Year last season, and has been heavily linked with a move away from the King Power Stadium, after scoring 17 goals and assisting a further 11 for his teammates in their remarkable Premier League winning season.
It’s been an important summer for the Foxes, who lost N’Golo Kante to Chelsea earlier in the month. However, Mahrez now joins some of his fellow teammates including Wes Morgan, Jamie Vardy, Kasper Schmeichel and Andy King, who also signed new deals during the off season.
The Algerian has signed a new deal until 2020.
Arsenal had been one of the big teams linked with a move for Mahrez, after already missing out on his teammate Jamie Vardy, who turned down a transfer to the Emirates in order to stay with Leicester.
The Foxes host their first home game of the new season this weekend against Arsenal, and will find out who they shall face in the group stages of the UEFA Champions League later this month.