The youngster moved to Anfield from Sporting Lisbon for £7million back in the summer, but hasn’t made an appearance in a red shirt.
The Portugal Under-21 international, who was born in London, will now move to La Liga to play for 10th placed Granada for the remainder of the campaign. Ilori made 11 appearances for Sporting Lisbon last season, as well as 20 games for their reserve team.
After signing for the Reds, Ilori has been made aware he is a transfer for the future, after not being selected to play a first team game under Brendan Rodgers. The Northern Irishman has now given Ilori the chance to gain some first team football elsewhere.
Fellow young defenders Jack Robinson and Andre Wisdom have left Anfield on loan this season, both playing in the Championship, with Robinson playing for Blackpool whilst Wisdom at Derby County, where he plays under the management of former England boss Steve McClaren.
As well as signing the Portuguese youngster in the summer, Rodgers also completed the loan signing of Aly Cissokho from Valencia, who has made 9 Premier League performances so far this season. The Frenchman will complete the season at Anfield before returning to Spain.