Lyon president Jean-Michel Aulas revealed that Liverpool target Yohann Gourcuff is surplus-to-requirements.
The Frenchman has had a difficult season with the French giants and that has led to talk that Liverpool are planning to make a move.
And they have been given a boost after Aulus admitted he is no longer wanted.
“He’s a great player but he just couldn’t fit in,” Aulas was quoted on the Sky Sports website.
The Lyon president was talking the morning after Paris Saint Germain’s 2-1 win away at Montpellier erased their slim hopes of winning the Ligue 1 title with a game to spare.
“What would have been wonderful is if he could have proved with Lyon what a great player he is,” Aulas told French television on Sunday.
“This is not great news for him,” Aulas admitted. “But it stops here.”