The Reds were expected to complete a deal for the 24-year-old former Saint-Priest frontman.
Despite a disappointing season, the Sunday Times report that Lemar could become the subject of interest for Liverpool again and Chelsea, and France boss Didier Deschamps wants the Les Bleus global to make a decision before their first game at the World Cup against Australia.
France Football Association president Noel Le Graet had suggested the move was nearly completed - according to reports in France - before Lyon's announcement.
Quickly becoming the transfer saga nobody wanted, Liverpool's pursuit of Lyon's Nabil Fekir appears to be at an end.
"Transfer negotiations with Liverpool and Nabil Fekir for the transfer of the captain of OL have not succeeded and Olympique Lyonnais have chose to put an end to this negotiation tonight at 8pm", OL said in a statement on their official website. "He's in the middle of negotiations and I think it's done", the FFF president said. This is the second time it has happened to LFC in as many summer transfer windows.
Fekir scored 18 goals and made eight assists in the 2017/18 Ligue 1 season, but having assessed the player physically Liverpool are now stalling on finalising the transfer.
According to the same story, Liverpool FC boss Klopp has identified Fekir as a long-term replacement for Philippe Coutinho at Anfield.
Now we must wait and see if Liverpool and Klopp go back in for a player they have coveted so much.
A source told ESPN FC on Thursday that Liverpool were confident about securing a €60 million deal for the France global, despite earlier comments from Lyon president Jean-Michel Aulas that no transfer would be concluded before the World Cup.