A £53 million move to Anfield had looked done and dusted at the start of the month with the player having agreed personal terms at Anfield and the deal just needed signing but concerns over an old knee injury led to Liverpool asking for a reduction in the asking price.
This infuriated Lyon and their president is now adamant that the player will not be going to Liverpool and have instead decided to offer him a new, improved deal to stay at Lyon.
There are even reports claiming he has been offered to Manchester United but president Jean-Michel Aulas has spoken with Fekir in Russia and said he can have a new deal with them.
He said: "I spoke with Nabil Fékir the day after the night when we decided to stop negotiations with Liverpool.
"He was very calm. I immediately said to him that if he wanted to stay, we could do an extension.
"I've said it before, we don't need to sell. We have the capacity to keep Fékir.
"The current plan is to let nobody leave to have the best team possible and to make signings as previously planned."