Arsenal icon Robert Pires shows off skills at Star Sixes
On Monday, Debuchy appeared set to end a torrid three years at Arsenal by joining Nice.
The 31-year-old was due to have medical and finalise personal terms with Nice but Lyon released Jallet from his contract, which still had a year to run and they moved quickly to sign him.
Debuchy's wages are understood to have played a major part in Nice deciding to switch attention to Jallet.
It means the defender must begin the search for a new club with his future at the Emirates over.
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Mathieu Debuchy won't be joining Nice
Debuchy is one of a number of players Arsenal are looking to sell this summer.
Lucas Perez, Kieran Gibbs and Carl Jenkinson were all left behind in London to find new teams while Arsenal went to Australia and China for pre-season training and matches.
While Wojciech Szczesny has arrived in Italy as he looks to complete a move to Juventus.
The Poland international is set to join the Italian champions in a deal worth around £10million.
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