The French champions were ready to take the England international on loan for the season before deciding to pursue other targets - most notably, Leeds United forward Mark Viduka.
The club's chairman, Jean-Michel Aulas, told Le Equipe: "We were indeed interested by Emile Heskey but we wanted a loan. We accepted to pay the player's whole wages. But we thought a lot about why Gerard Houiller wanted to let such a player go."
Lyon's decision to drop their interest in the 25-year-old former Leicester man could, of course, be to the benefit of his current club. After seeing just how tenuous his Anfield future had become, Heskey's pre-season form - a total six goals in just seven appearances - indicates that the burly forward is finally ready to unleash his undoubted potential upon the Premiership on a more regular basis.
Discuss Heskey's return to form