Alexandre Lacazette
Alexandre Lacazette will not join Atletico this summer. Getty

Lyon have confirmed Alexandre Lacazette's proposed move to Atletico Madrid is off as Manchester United's interest in the striker emerges.

Lacazette, 26, had a verbal agreement in place to join Atletico this summer but Thursday's decision that saw the Spanish side's transfer ban upheld by the Court of Arbitration for Sport [Cas] means they will not be able to register any new players until January.

Atletico can still attempt to sign players but the registration ban means they will have to convince their targets to sit on the sidelines for six months, effectively scuppering their chances of signing the France international.

Lyon president Jean-Michel Aulas describes the development as "bad news and good news" for the club, suggesting they still may have to find another buyer for their prized asset.

Aulas told L'Equipe: "It was a very important financial transaction. Of course it changed everything.

"Alex had a good exit for Atletico, the club of his heart. I have not spoken to his agent or him as I was in Cardiff, but I had told Alex not to anticipate too much because in football you can always have disappointments. This calls into question the reciprocal commitments that have been made. We had advanced on a possible deal. We may have one more striker next year."

Arsenal saw their efforts to sign Lacazette last summer very publicly rejected by Lyon. According to L;Equipe, the striker, who struck 36 goals in all competitions last season, is no longer keen on a move to north London because their reluctance to meet his full valuation with the same publication now reporting United lead the race for his signature.

Jose Mourinho's side performed a dramatic U-turn on Thursday, cooling their long-term interest in Atletico's Antoine Griezmann to instead focus their efforts on a more natural number nine, with Zlatan Ibrahimovic still recovering from a long-term knee injury.

United have since lodged an enquiry for Lacazette but Borussia Dortmund and Arsenal both remain in the picture.