"This is totally out of order because we have never been in touch directly with Lyon," insisted the Reds manager.
"Agents came to see me - and I told them he was not for sale. The player knows and the agent knows what I think."
While Heskey's future earlier this summer may have been open to conjecture, Houllier is only too happy to keep the £11m striker remain at the club after witnessing the former Leicester man's blistering pre-season form.
Houllier added: "I think Emile has benefited from a break over the summer and he has scored six goals already."