Speaking on Monday, however, agent Jean-Pierre Bernes revealed that he could still complete a deal this summer.
"Well he didn’t sign because well… it is not over!" he told LCI.
"This is not the end of the story."
Fekir was one of the stars of the season in Ligue 1, notching an impressive 18 goals and eight assists in 30 league games.
"Although Liverpool made the possible transfer of Nabil a priority, and [we have been] subject to other proposals consistent with the interests of Nabil and OL from ambitious clubs, Olympique Lyonnais is delighted soon to be able to count on the presence of our captain, who is a leading player for this 2018-19 season, during which the club will play the Champions League as a third seed," the club added in their statement.
Fellow Reds target Thomas Lemar, meanwhile, has since landed a move to Atletico Madrid, while Paris Saint-Germain star Julian Draxler has also been mentioned as a possibility should they fail to land Fekir.