Police launched an investigation into allegations that a friend of Benzema's attempted to extort money from Valbuena over a sex tape believed feature the Lyon footballer and his partner.
Due to the investigation, Benzema is not permitted to play for France, and the forward revealed on Twitter that he will not be given a place in the squad for their home Euros this summer.
He tweeted: "Unfortunately for me and for all those who have always supported me, I will not be selected for our Euro in France."
"The president of the federation and the coach would agree that athletic performance is an important but not exclusive criteria for selecting the France national team.
"The ability of players work towards unity, in and around the group, are also taken into account. As a result, Noel Le Graet and Didier Deschamps decided that Karim Benzema will not participate in Euro 2016."
Benzema has scored 27 goals in 32 appearances for club and country this season.