Loop variable not getting collected

TestFoo.cs

    public partial class Form1 : Form
    {
        public Form1()
        {
            InitializeComponent();
        }

        Foo GetFoo(int i)
        {
            if (i == 0)
                return new Foo(i);
            lock (this)
            {
                Monitor.Wait(this);
                return new Foo(i);
            }
        }

        private void button1_Click(object sender, EventArgs e)
        {
            int i = 0;
            while (true)
            {
                var foo = GetFoo(i++);
                Console.WriteLine(foo.i);
                foo = null;
                if (i == 2)
                    return;
            }
        }
    }

    class Foo
    {
        public readonly int i;

        public Foo(int i)
        {
            this.i = i;
        }
    }