Lyon says Nabil Fekir will remain their player after failed negotiations with Liverpool for the France forward.
The Reds were expected to complete a deal for the 24-year-old former Saint-Priest frontman.
French Football Federation president Noel Le Graet revealed the Lyon star had passed a medical ahead of a statement from the Ligue 1 club that negotiations had ended.
Fekir, who scored 18 goals and made a further eight, is currently in preparations with France ahead of the 2018 Russia World Cup.
The club statement read: “Olympique Lyonnais informs that the tripartite negotiations with Liverpool and Nabil Fekir for the transfer of the captain of OL have not succeeded and that Olympique Lyonnais has decided to put an end to this negotiation.”
Liverpool was hoping to add Fekir to their off-season signings of Monaco midfielder Fabinho and RB Leipzig’s Naby Keita.