Lyon president Jean-Michel Aulas has said Nabil Fekir will be at the club next season but added that he gave him permission to join Liverpool last month "because of their legendary status."
France international Fekir appeared on the brink of a move to Anfield only for the deal to fall through after he had completed a medical and agreed personal terms.
Aulas told RMC Sport that he now felt the midfielder would stay in Ligue 1 despite some reports suggesting a Liverpool switch could yet be resurrected.
"Nabil will, I think, be at Lyon next season," he said.
"I have a near father-son relationship with my players, and I gave him the opportunity to join Liverpool because of their legendary status.
"I did the same with [Corentin] Tolisso [who joined Bayern Munich] and [Samuel] Umtiti [who went to Barcelona].
"Nabil is our captain, and the wish of the coach [Bruno Genesio] is that he is kept."