The defender struggled for regular football at the King Power Stadium.
He headed out on loan to Fiorentina on transfer deadline day with the Italian side looking at a potential permanent deal in the summer.
Benalouane has previously played in Italy with Cesena, Parma and Atalanta - from whom Leicester plucked him away in the summer for a deal reported by ESPN to have been in the region of €8 million (£6 million).
His agent has been speaking about the move and admitted he was not unhappy at Leicester, but just wanted more regular football.
Football Italia report Daniel Striani as stating:
“We had no doubts.
“We had talks, there are hundreds of those on the last day of the transfer window, it was a negotiation like, like many others.
“It didn’t come up on the last day, there had been interest, it’s not something that was invented on the last day.
“It’s open on both sides, it’s a loan with the right of redemption, we’ll evaluate it at the most appropriate time.”
“Leicester? He worked well, but more importantly Leicester were functioning well. ‘Never change a winning team’, as they say in England.
“It’s hard to make changes when you’re doing so well and the team is top of the League."
The former French under-21 international struggled to make an impact at Leicester.
He played just nine times this season with only four of those appearances coming in the Premier League.
He has struggled to dislodge the impressive Robert Huth and Wes Morgan from the Leicester back-line and that has seen languish on the sidelines for most of the season whilst the side sit at the top of the table.