Puel loses Lyon compensation claim
Puel's lawyer had been asking for 3.3 million euros in lost salary and 1.66 million euros in damages but an industrial tribunal rejected the claim.
"This decision confirms the validity of Lyon's position," the seven-times French champions, who sacked Puel at the end of last season, said in a statement on their website.
Puel, who was replaced by Remi Garde, has 15 days to appeal to Lyon's Court of Appeal.
Former Monaco defender Puel, who also coached Lille and Monaco, failed to win the French title in his three-year spell with Lyon but led them to their first and only Champions League semi-final in 2010.