Former France and Liverpool coach Gerard Houllier stepped down as Olympique Lyon coach on Friday.

"For a number of reasons I have decided to leave," Houllier told a news conference.

"I have lived two exceptional years here which, in many ways, reminded me of the six years I spent at Liverpool," he added.

Houllier, 59, who joined the six-times champions in 2005, helped them win Ligue 1 titles in 2006 and again this year.

He had said several times he would still coach Lyon next season but that did not stop the rumours that he might leave and they turned out to be true.

Lyon chairman Jean-Michel Aulas said Houllier would now take a sabbatical year before deciding what to do next.

Houllier has been linked with a job as a technical director at the French Football Federation (FFF). He denied last week having been approached by Dynamo Kiev.

"He is taking a new direction but he will not go where it has been said he might, not to the FFF and not to Kiev," Aulas said.

Lyon are still in a class of their own in France but what they desperately wanted was to make an impact in Europe, which they failed to do, falling to AS Roma in the first knockout round of the Champions League.

Lyon also missed out on their first domestic double by losing to Girondins Bordeaux in the French League Cup final.

Houllier has also had to deal with internal discontent following his decision to leave Brazilian defender Claudio Cacapa, the former Lyon captain, out of his starting line-up.

"This club has a new project over three years with a new stadium," Houllier said.

"I didn't feel like getting involved for another three years. I am proud of what we have achieved over the past two years. This club has improved and belongs to the best in Europe."

French media have named former France captain Didier Deschamps, the current Juventus coach, as a possible replacement for Houllier at Lyon.