The 65-year-old was axed by the Foxes last night just nine months after he guided the side to a historic title victory in the Premier League.
The Italian was named the Premier League's manager of the season, the LMA manager of the year and best FIFA football coach following the remarkable feat but was let go with the champions just one point above the relegation zone.
According to The Sun, Ranieri flew back to his homeland following the announcement yesterday and is already being courted by Fiorentina as a potential replacement for Paulo Sousa, who is expected to move to Juventus this summer.
La Viola exited the Europa League at the hands of Borussia Monchengladbach last night and have also endured a tough time domestically, currently sitting eight points off the European places in the Serie A table.
Ranieri, who is also understood to have offers from the Chinese Super League, previously managed Fiorentina from 1993 to 1997, helping them to promotion to the top flight and winning the Coppa Italiana and Supercoppa Italiana.