Tottenham Hotspur boss Mauricio Pochettino decided against the signing Pape Cheikh Diop because he is ready to hand a first-team opportunity to teenager Tashan Oakley-Boothe.
The north London side had been interested in signing Celta Vigo midfielder Diop and saw an improved offer said to be worth €10m accepted by the La Liga side last week.
Lyon however have secured a deal for the 19-year-old midfielder, officially presenting their new signing on Tuesday [29 August] morning.
Tottenham's sudden decision to drop their interest in the Celta starlet comes after Pochettino decided 17-year-old Oakley-Boothe was a better option to bolster his first-team squad this season, according to the Daily Mail. The teenager featured for the first-team during their pre-season tour of the United States and was named on the bench for Sunday's draw with Burnley after Victor Wanyama picked up a knock.
Pochettino has persistently turned to the Totttenham academy during his time at north London with young full-back Kyle Walker-Peters coming the latest to be drafted into the senior team, following in the footsteps of Harry Winks and Harry Kane.
The Argentine coach explained last Friday the club are still looking to bring three more players to the club following the arrival of Colombian defender Davinson Sanchez and backup goalkeeper Paulo Gazzaniga.
The club are understood to be on the verge of completing a move for Paris Saint-Germain full-back Serge Aurier despite interest from Manchester United while 20-year-old Argentine Juan Foyth has effectively confirmed his move to north London.
Ross Barkley also remains on the Tottenham radar having been told he can leave Everton this summer, although Chelsea also remain heavily linked with the England international.
"Yes, I am confident of getting a minimum of three players," Pochettino said on Friday. "We are working hard to try and add more quality to the squad. There are many rumours and we are working hard. We will see. There are only a few days to the end of the transfer window."