Corentin Tolisso has decided to snub a move to Napoli and will stay at Lyon, who claim the Serie A side were willing to pay up to EUR37.5 million for the midfielder.
Recent reports suggested the 21-year-old had already agreed terms with Napoli, but Lyon announced on Wednesday that Tolisso will remain at Parc Olympique Lyonnais.
"Lyon are pleased to announce that Tolisso has decided to stay with Lyon this season despite strong interest from Napoli," a statement on their official website reads.
"[President] Jean-Michel Aulas said more than once in recent days that he could not imagine Corentin leaving despite the player's initial desire to join Napoli.
"Corentin informed Jean-Michel Aulas on Wednesday of his decision to stay after a long and positive conversation.
"This means L'Equipe were wrong to announce the transfer as a done deal, while they also got their reputed transfer fee of EUR26m wrong, with Napoli's offer actually worth EUR37.5m, of which EUR7.5m were bonuses.
"OL welcomes Corentin's decision to stay, which further illustrates his commitment to this club and the confidence he has that we will have a great season."
Tolisso has developed into a key figure at Lyon since breaking into the first team in August 2013 and is keen to help the team to success in 2016-17.
"I am very attached to this club and I not feel like leaving at this stage," he commented on his decision to stay.
"I still have great things ahead of me with this club and look forward to having a great season."
The midfielder has a contract with Lyon until June 2020.