Real out of Edmilson race
Madrid had been linked with the World Cup winner in a deal that included Savio going the other way.
The French champions have insisted they are no longer in the hunt for Savio and have now said that Madrid are not in the running for Edmilson, denying reports that a deal is close.
Barcelona, Bayern Munich and Arsenal were the clubs interested before the World Cup but had seemed to be put off by his price tag of around é¼25 million.
Lyon now say that the only firm interest they have received has come from England and Italy, with Champions League holders Real Madrid out of the picture.
"We have not had any offer from Real Madrid," said the club.
"In this period a single club from Italy and England have contacted us about him, but we have rejected them."