The Croatian centre-back spent the 2018-19 season on loan at Celtic Park where he played under both Brendan Rodgers and Neil Lennon, who replaced the Irishman in February before going on to lift the Scottish Premiership title and complete a treble-winning season.
Benkovic remains a popular figure among Celtic fans after making 30 appearances for the club, but he departs the Foxes having made only two senior appearances since joining from Dinamo Zagreb in August 2018 on a five-year deal.
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Hide AdThe 24-year-old has also had loan spells at Bristol City, Cardiff and Belgian side OH Leuven – but a return to Celtic is not on the cards.
According to Sky Sport Italia, Benkovic is due to have a medical with Udinese ahead of a move to Serie A.