Lo Celso came to Spurs in the summer of 2019 but has struggled to make his mark for the north London outfit, failing to win over new boss Antonio Conte.
Lyon moved to snap Lo Celso up on loan as part of a bid to replace Newcastle United bound Bruno Guimaraes and appeared on course to sealing his signature.
Lyon appeared to be set to land Lo Celso on loan, but now the move appears to have fallen apart.
The midfielder himself has refused the move as he is unwilling to move to the French side, according to French radio station RMC.
Lyon are looking for a midfielder as they are in line to lose Guimaraes to Newcastle but they are now set to miss out on Lo Celso.
Spurs are trying their hardest to bring the Juventus duo Dejan Kulusevski and Rodrigo Bentancur to provide more options in midfield.
It remains to be seen whether Lo Celso departs Spurs this window, if not to Lyon then somewhere else.
