Lyon have pulled out of a deal to sell Nabil Fekir to Liverpool, the French side announced in a shock statement.
Liverpool were confident of completing a deal to sign Fekir before the World Cup starts on Thursday but have now been served a huge blow in their pursuit of the France international.
Jurgen Klopp opted against replacing Philippe Coutinho in January but has since identified Fekir as a top transfer target to complete a stunning overhaul of Liverpool's midfield options.
The transfer appeared a foregone conclusion at the end of last week after both sides agreed on a fee but now Lyon have announced Fekir will stay at the club next season.
“Lyon can confirm that the three-way negotiations with Liverpool and Nabil Fekir for the French international have not succeeded, so the club has decided to end the negotiations tonight,” Lyon said in a statement on their official Twitter account.
“Although Liverpool has been a priority of a possible transfer of Nabil, Olympique Lyonnais are delighted that our captain will remain with the club for the 2018-19 season and lead the team in the next Champions League tournament."
Conflicting reports have since emerged for the reasons behind the transfer collapsing, with French media claiming Liverpool unsuccessfully tried to lower the previously agreed fee in the wake of Fekir's unsatisfactory medical results.
However, it has been reported by sections of the English press that Liverpool actually pulled out of the transfer on Friday following Fekir's medical and Lyon were unsuccessful in restructuring the deal for the transfer of their captain.
It remains to be seen whether a deal to sign Fekir is complete dead for Liverpool, but Lyon also added they would still listen to offers from other European clubs this summer.
Liverpool may put an end to this saga and sound out other targets, which could rekindle the club's long-standing interest in Monaco ace Thomas Lemar.
The France international was heavily linked with a move to Anfield 12 months ago and was touted as a possible replacement for Coutinho at the start of the year.
Monaco have already rejected a €60m offer from Atletico Madrid this summer, while Real Madrid were thought to be pursuing the versatile midfielder until Zinedine Zidane resigned.
Fekir played a direct hand in 26 goals in 30 league appearances for Lyon last season, while only Marseille’s Florian Thauvin (13) won the WhoScored Man of the Match award more times than the Lyon skipper (12).
