The 27-year old is facing blackmail charges relating to an extortion scam over a sex tape involving French team-mate Mathieu Valbuena, a case that has badly damaged his reputation.
However, the French superstar has denied any wrongdoing.
With Valls insisting Benzema should be nowhere near the French squad when the country hosts next summer’s European Championship
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Speaking to French radio Europe, Valls said: “A great athlete should be exemplary. If he is not, he has no place in the France team.
“There are so many kids, so many youngsters in our suburbs that relate to great athletes.
“They wear the blue jersey, the colours of France, which are so important in these moments.”
Benzema is considered one of France’s key players as they prepare to host the Euro 2016 tournament in June, but neither he nor Valbuena were selected in the squad for the recent friendly matches with Germany and England.