The Italian club have been chasing the Algerian all summer, but they have failed with numerous bids.
Leicester are thought to want close to £40m for the 26-year-old, who informed the Foxes at the beginning of the summer that he wanted to leave the club.
Last week the Italian side made it clear they would not be raising their offer for the player but now, according to Sky Italia, they are categorically refusing to meet the £40m valuation and will not bid again.
The Serie A side will now turn to other targets, before the transfer window closes, to bolster their squad as they prepare to battle at the top of the league table.