PARIS (Reuters) - Midfielder Michael Essien is staying at Olympique Lyon and will not join Chelsea, the French champions' president said on Sunday.

The English champions, who have been chasing Essien for weeks, had been given until Sunday to match Lyon's valuation of 45 million euros (31 million pounds).

"We have rejected their last offer and we are closing the door," Lyon president Jean-Michel Aulas told reporters.

"It is great news for the club."

Lyon sources said Chelsea's last offer was 38 million euros plus their Portugal midfielder Tiago, who Lyon officials had earlier said the club was interested in.

Essien, who has not played an official match for Lyon this season, has said he wants to go to Chelsea.

The 22-year-old, who won the Ligue 1 Player of the Year award last season, has said he is unhappy with his situation.

"This is not Michael's choice but mine and I accept responsibility for it," Aulas said.

Lyon officials have accused the wealthy London club of using unfair tactics in their bid to persuade Essien to join them.

"Chelsea have not respected the rules in this," Aulas said. "We proved that you can resist."

Lyon coach Gerard Houllier did not pick Essien for a home game against Racing Strasbourg on Sunday but denied British media reports that the Ghana midfielder was on strike.

"I am not selecting him because his mind is not set on football," Houllier said on Saturday.

"I believe that he is not ready to play a match and will not be for as long as his case is not settled."

Houllier, whose team are chasing an unprecedented fifth successive French title, said he was determined to keep Essien and believed the player was in the same league as Liverpool's Steven Gerrard and Chelsea's Frank Lampard.