According to Sky Sports, the North London club is on the verge of signing Vardy after Arsenal made a bid of £20million, triggering a release clause in his contract leaving the Foxes with no say in the matter.
The Gunners already have several options upfront with the likes of Alexis Sanchez, Giroud, Danny Welbeck and Theo Walcott all on their books, but reports suggest Wenger is keen to recruit an out-and-out goalscorer.
Despite the fact Vardy's signing might mean less game time for the Frenchman, Giroud believes he would make a good addition to the squad and says he welcomes the competition for places.
"I have been told that Jamie wants to join us and it's very good news for us. I think we can be complimentary and that's all I can say," he told Sky Sports News HQ. "He's a fantastic player, so it's good news for us."
"As I said in the past I am happy with competition. We have always had fantastic strikers at Arsenal and I want the best for this club. Hopefully he is going to help us win this title.
"The boss wanted to sign at least one or two strikers, so I expected a top striker and I think it will benefit the club and hopefully he is going to score a lot of goals like he did at Leicester," he concluded.