MALO GUSTO will stay at Lyon despite interest from Chelsea and Manchester United, according to Lyon president Jean-Michel Aulas.
The two teams were battling it out for the right-back and hoped to complete a deal this month.
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Chelsea reportedly agreed personal terms with the youngster but Lyon denied their advances.
The Blues reportedly bid £18million for Gusto and were believed to be preparing a second bid worth between £27m and £35m.
But Lyon president Aulas has announced Gusto will not be leaving this month.
He said in a statement: “I can confirm that Malo Gusto will stay here at least until the end of the season”.
According to Fabrizio Romano, Chelsea are still prepared to make the French side another offer.
It is claimed Gusto, 19, is their number one priority this month – ahead of a signing a new midfielder.
Reports claimed United were hoping to hijack Chelsea’s move for Gusto and have told the right-back to “not to rush” a decision.
Both clubs could revisit a possible deal in the summer, with Aulas not ruling out a move at the end of the season.
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Chelsea have also been linked with Denzel Dumfries this month and could sign the Inter full-back as an alternative.
But the Italian giants are said to want between £43m-£53m for the former PSV Eindhoven hero.
