French goalkeeper Hugo Lloris has signed a new deal with Lyon, keeping him at the club until 2015.
The 24-year-old, who was linked with Manchester United, and latterly Arsenal during the summer, has signed a two-year extension to his original deal.
The news will end Arsenal's interest in the player, who could have solved the club's goalkeeping problems.
"Olympique Lyonnais are delighted to announce the extension of Hugo Lloris' contract for a further two years," a club statement said.
However, the form of Wojciech Szczęsny, who has been Arsenal's player of the season thus far, as has seemingly vindicated the faith Arsene Wenger has put in him.
The Pole was helpless in Sunday as Rafael Van Der Vaart and Kyle Walker's goals helped inflict the club's third defeat of the season on Arsenal.