The 29-year-old has long been linked with a move away from Stade Gerland, but he has so far been unable to secure a transfer, despite alleged interest from the likes of Juventus and Napoli.
However, the most recent media reports suggested that Bastos had accepted an offer to join the UAE-based outfit, following a revelation from a source close to the side that they were after the Brazilian.
Nonetheless, Al Ain released a statement on Saturday indicating that this is not the case, but assuring that high-profile arrivals were actively being worked on.
“Al Ain president and team manager Matar Al Sahbani denies any rumours about a contract with the Brazilian player Michel Bastos of Lyon. He did not arrive at the Al Ain camp in Spain.
"He also asks Al Ain fans to forget any worries about their team because the Al Ain board of directors - chaired by Sheikh Abdullah bin Mohammed bin Khalid Al Nahyan - have been working hard for a long time, including over Eid, to land top foreign players so they can help the club reach new targets.”The reigning Pro League champions continue their pre-season training camp in Spain with a match against Rayo Vallecano on Wednesday.
Bastos, meanwhile, scored in Lyon's 1-1 draw with Evian on Friday night; his second in as many matches for the Rhone outfit.