The Foxes have been keen to add experience to their line-up, in a bid to bounce straight back to The Premiership, with Muzzy Izzet and Robbie Savage likely to leave this summer.
Nalis, 30, had been out of contract with the French side, and was available on a free transfer, however the defensive midfielder decided to join Uefa Cup-bound Chievo.
"It is disappointing because we have been wanting to sign Lilian (Nalis)," said Adams to lcfc.co.uk. "We had him watched a couple of times and were impressed.
"However, we weren't quick enough and Chievo struck up a deal with the boy. They could offer him European football which was obviously a big factor."
(picture courtesy of sc-bastia.fr)
