The French international has attracted interest from a host of major European teams, most notably Valencia, but Govou has decided to spend at least one more season with the French champions.
"I'm going to stay with Lyon for the next season," the 23-year-old said.
"I have talked to the chairman and we have got a deal.
"I will now look to play in the Champions League; I still have a lot to learn from playing in this kind of tournament.
"I am the first choice at Lyon so I will get to play a lot of games which will help me play at Euro 2004."
