London - Leicester City will not sack striker Jamie Vardy after he was caught on camera apparently using a racial slur in a casino, manager Claudio Ranieri said on Thursday.
Vardy, 28, was shown abusively calling another man "Jap" three times in a video published by newspaper The Sun on Sunday last weekend.
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The striker, who made his England debut last season, subsequently apologised and Leicester opened an investigation into the incident.
But Ranieri says that Vardy will not be sacked, telling a press conference: "The situation is, everything is OK. Jamie apologised to everyone, it was a mistake.
"The relationship is OK. We go on and forward. The club has said it is OK. James has apologised and for me it is OK. (If) Jamie does something on the pitch then I speak with him."
Asked if Vardy would be sacked, the Italian replied: "No. It is not my matter, but he won't be."
The footage emerged a matter of weeks after Leicester sacked three players, including James Pearson, son of former manager Nigel for appearing in a sexually explicit video filmed on the club's close-season tour of Thailand that featured racist language.
Vardy opened the scoring for Leicester, who are owned by the Thai Srivaddhanaprabha family, as they began the Premier League season with a 4-2 win at home to Sunderland last Saturday.
A 1 million ($1.5 million, 2.1 million euros) signing from non-league Fleetwood Town in 2012, Vardy scored five goals last season and made his England debut in a 0-0 friendly draw with the Republic of Ireland in Dublin in May.