Last season's Golden Boot runner-up signed a new four-year contract with the Foxes, rejecting the advances of Arsenal.
Centre-back Morgan, who was also rewarded with a new deal, believes Vardy d made the right call in snubbing the Gunners and says that he expects the 29-year-old striker to continue where he left off last term.
"It's to be expected that teams are going to be interested in him, but he has committed himself to Leicester now and it's great for the fans, the players and the club," the Jamaica international told The Mirror.
"He has proved himself on the big stage and, no doubt, he can do that again because he's much more confident now. Even on the international stage with England, he has been a threat straight away.
"And, at Leicester, he's proved himself. We are the defending champions - there's no reason for him to leave."
Morgan went on to warn Vardy that opposition defenders will be more aware of him and his style of play this coming campaign.
"I'm sure teams will do their research and know about him - he's a household name now, isn't he? So, teams will try to nullify his threat," the 32-year-old added.
"But plenty of defenders have tried and failed so far. I'm just looking forward to seeing what he can do."