According to Francois Gilles, the Sochaux defender has his heart set on a move to Stade Gerland, and will now snub any opportunity to move to the Premier League this summer.
Gunners boss Arsene Wenger had been credited with an interest in bringing Corchia to the Emirates Stadium, as he seeks to find a long-term replacement for Bacary Sagna, as speculation continues to surround his future in north London.
However, the 22-year-old full-back now looks set to stay in France, having held talks with Sochaux over a contract extension, whilst also negotiating a proposal with Ligue 1 rivals Lyon.
"Sebastien has chosen," confirmed Gilles. "Lyon is the future, this is what he wants (and) is what he has planned. I can at least confirm that today."
It's not clear if Arsenal have yet identified an alternative defensive target, but are expected to be busy in the transfer market this summer, with Wenger set to strengthen his squad during the current window.