Portsmouth sacked Perrin in 2005 after just eight months in charge
Former Portsmouth manager Alain Perrin has stepped down as Lyon coach after a season in charge of the French club.
Lyon won their first domestic league and Cup double last season but there was reported disharmony between Perrin and his backroom staff.
"We've reached agreement for him to go under conditions which suit us both," said Lyon chairman Jean-Michel Aulas.
Aulas said Lyon were in talks with Lille coach Claude Puel over the vacancy but no decision had been made.
Earlier this season, the seven-times French champions said they needed a manager who could help them reach the latter stages of the Champions League, a competition where they have been no further than the quarter-finals.
There has to be a harmony between the technical staff and the coach. It wasn't found
Jean-Michel Aulas, Lyon chairman
Lyon were knocked out of the Champions League in the last 16 by Manchester United last season and Aulas said: "He (Perrin) obtained titles, including the double, but managing is foreseeing. Even if results were achieved, some results were not.
"If I take this decision it's because there were a number of reasons, a bad balance between the coach's possibilities and the ambitions of the club.
"There also has to be a harmony between the technical staff and the coach. It wasn't found."
Puel, 48, has two years left on his contract with Lille, who finished seventh in the league last season.
Aulas said: "We've been trying to persuade him for a long time. He is very interested in our proposal but it's up to his club to decide and that hasn't been achieved yet. Negotiations are at full steam."
Meanwhile Lyon have signed Cameroon midfielder Jean II Makoun in a £11m deal from Lille.
"I'm delighted to be arriving," said the 25-year-old Makoun, who signed a four-year contract on Monday.
"I've been a Lyon target for a few seasons but Lille were in the Champions League twice and vetoed it. Now it's a done deal."
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