Liverpool and Newcastle target Alexandre Lacazette set to sign new deal with Lyon

Alexandre Lacazette (R) of Olympique Lyonnais and Markus Steinhofer of Real Betis Balompie in action during the UEFA Europa League group stage match between Real Betis Balompie and Olympique Lyonnais.

Both Liverpool and Newcastle United have been dealt a blow in their chase for highly rated French forward Alexandre Lacazette with youngster now looking set to extend his stay at Lyon, according to reports in France.

The duo were initially put off by Lyon’s demand of £16million for the youngster, and now it seems that the Frenchman, who made his debut for the French national team last year is all set to pen a new deal with his current employers.

Liverpool have been trying desperately to add ammunition to their attack after losing Luis Suarez to Barcelona. The Merseyside outfit have reportedly agreed to a £8.5million deal for QPR’s Loic Remy, but will seek to further strengthen their options up front.

Newcastle meanwhile, has been looking for additions to the forward line after losing Loic Remy, Shola Ameobi and Luuk de Jong since the end of last season.

Lacazette, who scored 15 goals in Ligue 1 last season seemed to make perfect sense for both sides. However, the 23 year old’s recent statement in French TV network Canal+ seemed to have put an end to the interest of both clubs.

“I will be staying at Lyon,” said Lacazette, “I want to continue my development here.”

Lazacette’s comments follow hot on the heels of Lyon president Jean-Michel Aulas’ assessment that a new deal is close.

“We had lunch with him (Lacazette) and his agent, and we’re on track to agreeing a three-year extension,” said Aulas. “It’s for him to make the decision. He’s under contract until 2016 and he’s still a young player.”