Liverpool were thought to be on the verge of completing a £53m deal to sign the France international on Friday, only for his medical to reveal an underlying knee problem.
The Reds then attempted to renegotiate the transfer fee, causing Lyon to publicly announce that they had ended talks with the Anfield outfit on Saturday evening.
Personal terms are understood to have been agreed for a five-year contract worth £140,000 per week, with Fekir even conducting interviews with the club's media team.
L'Equipe also reports that Liverpool were confident enough that the deal was wrapped up that they allowed Fekir to choose his desired shirt number.
The report does not reveal which number Fekir opted for, but the number 10 shirt remains unclaimed at Anfield.