Chelsea are keen to bring in another striker in January, but Vardy dismissed any suggestions of him moving to west London.
According to Sean Taylor at The Independent, he said: "Who have I been linked with today? Chelsea. They've been linked with everybody, haven't they? You just have to take things like this with a pinch of salt. It's just rumours. Usually it all gets started by someone throwing a few quid on it at the bookies."
Chelsea manager Antonio Conte has previously said his club was not interested in the Leicester striker:
Vardy caused Chelsea all sorts of problems in the Foxes' 0-0 draw with the Blues at Stamford Bridge earlier in January. His pace and direct running tormented the champions in a match they were fortunate to draw.
Chelsea have yet to bring in a striker in January, although AS Roma boss Eusebio Di Francesco recently said his club is in talks with the Blues over a move for Edin Dzeko, per Goal:
Dzeko looks to be a decent option for Chelsea; he is a strong and powerful striker who has Premier League experience. However, he will turn 32 in March and is clearly not a long-term option.
Meanwhile, Luiz is happy to stay at Chelsea because he believes Conte could leave the club, which would boost his chances of a return to the first team, per Rhys Turrell at the Daily Star.
The Brazil international has fallen out of favour under the Italian and is struggling for game time at Stamford Bridge. He has made just three appearances since November, but he was also sidelined with a knee injury during that stretch.
Conte has become frustrated with Chelsea's transfer dealings, and his future at the club is in doubt, per Goal's Nizaar Kinsella.
However, the Italian has said he is not thinking about what lies ahead, per Vaishali Bhardwaj at the Evening Standard:
Even if Conte does depart, Luiz still faces a fight to earn a regular place in the Chelsea defence following Andreas Christensen's emergence. The 21-year-old has forced his way into the team this season and has been a revelation at centre-back.
The Denmark international's form has seen him rewarded with a new deal. Scouted Football recently highlighted his composure on the ball:
Luiz may well last longer at Chelsea than Conte, but the Brazilian still wouldn't be guaranteed first-team football. And if he wants more regular game time, he may be forced to look elsewhere.