Rahane was recalled to the Indian Test team last month.
Rahane was supposed to join Leicestershire for the One-Day Cup next month but has opted for a short break from the sport.
Rahane was recalled to the Test team for the WTC 2023 final against Australia and he registered scores of 89 and 46 in the marquee clash at The Oval last month.
As expected, Rahane retained his place in the Test side for the West Indies tour and he was also handed the vice-captaincy of the team.
In a statement, Leicestershire supported Rahane’s decision to take a break following the unexpected hectic schedule.
“Firstly, we are fully understanding of Ajinkya’s situation. He has experienced a hectic schedule in recent months, both in India and travelling with the national team, and we accept his wishes to recover and spend some time with his family," Leicestershire Director of Cricket Claude Henderson said in a statement.
“We have been in constant communication with Ajinkya and accept how situations can change quickly in cricket. He is extremely grateful for our understanding and still hopes to play for Leicestershire one day," he added.
Australia’s Peter Handscomb has been named as Rahane’s replacement and will continue to play for Leicestershire for an extended period.
Handscomb had the opportunity to represent the county club earlier in the season in both the County Championship and T20 Blast.
“Thankfully, we had planned for a situation like this, and we are delighted Peter is staying on with the team. He brings many qualities alongside his batting and wicketkeeping, including strong leadership, which is a massive help to Lewis (Hill) and the rest of the guys in our changing room,” Henderson said.