The former Real Madrid striker is also linked with Arsenal and Chelsea.
After it was reported that Benzema wanted to leave Al-Ittihad, having been under intense pressure to deliver.
However, Lyon has been ruled out of the move because of his salary, which is around 8 million Euros per annum.
Responding to reports linking him with a move away from Al-Ittihad, which he joined at the end of his Real Madrid contract in the summer, the 36-year-old said it was a false report linking him away from the club.
Meanwhile, some reports claimed that France International recently did not return to training on time and has since been asked to leave the club.
It was also gathered that Benzema held a meeting with Al-Ittihad to discuss his future and turned down the idea of joining another Saudi club on loan.
Marca also reported on Wednesday that Arsenal were one of the clubs ‘talking’ to the forward’s entourage’ ahead of another meeting between Benzema and Al-Ittihad.
The Gunners were reportedly competing with Manchester United and Lyon for the striker’s signature, while Chelsea have also been mentioned as a potential destination for him.
The report also claimed that Benzema was set for ‘definitive’ talks over his future, with Al-Ittihad unwilling to see him leave the club.
But this latest report has shut down suggestions that he is set to leave the club during the January transfer window.
In an interview with L’Equipe, Benzema, however, said the reports surrounding his future are completely false.
“The French media don’t know what to invent anymore. The bigger the better,” he said.
This is expected to be a blow to Arsenal and Chelsea, given their respective needs for a striker. Benzema, who is a potent striker and was recognised as one of the world’s best forwards during his time at Real Madrid, would definitely be a big addition to any squad.
This season, he has scored a total of nine goals in 15 league games for Al-Ittihad.
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