Newcastle tried to sign the 23-year-old in the January transfer window, and they have have been linked with a second offer for Grenier - who is also said to have attracted interest from Arsenal and AC Milan.
However, Newcastle have confirmed that they have not made a new approach and Lyon have backed that up with a statement.
"Clement was not training because of a program of rehabilitation after his injury," said the club.
While a new bid for Grenier is not in Newcastle's thinking, they are understood to be back in for Loic Remy - who saw a move to Liverpool collapse last week.
They also remain interested in Grenier's team-mate Alexander Lacazette.