Napoli President Aurelio De Laurentiis accused Lyon of rejecting the same bid they requested for Maxime Gonalons.
Last week negotiations appeared to be at the final stage, but on Tuesday Olympique Lyonnais surprisingly announced they had turned down the offer.
“We proposed to Jean-Michel Aulas precisely what he requested,” De Laurentiis told French newspaper L’Equipe.
“He sent us a message asking us for €17m. He wrote to me that he would’ve sold Gonalons and that was his price-tag.”
This is the second time Napoli have just failed to capture the midfielder, who had also been very close to a move over the summer.
According to Lyon chief Aulas, Napoli had proposed "€15m plus €2m in bonuses" rather than €17m outright.