Noel Le Graet, president of the French Football Association, had hinted that a deal would still be finalised before Fekir travelled to the World Cup next week.
When the deal was not made official on Friday, doubts were cast over the player's fitness as he had suffered a serious injury to his right knee previously.
"Olympique Lyonnais confirms that the tri-party negotiations with Liverpool and Nabil Fekir for the transfer of the Lyon captain have not succeeded and that Olympique Lyonnaise have chose to put an end to the negotiations at 20:00 [CET] on Saturday night".
"It's under negotiation, I think it will be done".
British and French media have been reporting for several days that the 24-year-old, who is part of France's World Cup squad, was on the verge of joining Liverpool for 60-70 million euros (USD 71-82 million). He's in good spirits.
"It's always like that when you talk about a transfer: each tries to raise his price, to lower his price, when there's a hiccup someone wants it reduced". That's logical, we've done it for other players.
The Merseyside outfit have funds to spend after the Reds sold Philippe Coutinho in a £142m deal from FC Barcelona in the January transfer window. "It would be better for him [to complete the transfer], but he's not perturbed", Le Graët added.
However, negotiations have now hit a snag and the prospect of another season in Ligue 1 beckons for the highly exciting attacking midfielder, whose 18 goals and eight assists propelled Bruno Genesio's side to third place this term, two points behind runners-up Monaco.
Fekir is due to fly to Russian Federation with France's World Cup squad after their game against the U.S. on Saturday.