But Grenier has ended speculation linking him with a move to the Gunners by signing a new contract at the Ligue 1 outfit.
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"There was interest, but I only wanted to stay with Lyon," said Grenier.
Meanwhile, Arsenal kicked off their pre-season tour with a comfortable 7-0 victory over the Indonesia Dream Team.
Olivier Giroud scored twice, while Theo Walcott, Chuba Akpom, Lukas Podolski, Kris Olsson and Thomas Eisfeld all scored late on.
Frenchman Grenier has opted to stay with current club Lyon rather than make the switch to Arsenal
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Grenier in action against Brazil earlier in the season
Grenier loses out to Tottenham's Scott Parker in the Europa League last season
Arsene Wenger had been looking at bringing Grenier to Arsenal this summer