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Monaco defender Sebastien Squillaci is expected to sign a contract with Lyon on Friday.
The French champions have been locked in negotiations with Monaco regarding a deal for Squillaci, which would see Sylvain Monsoreau head in the opposite direction.
An agreement has now been reached, with Squillaci due to ink a four-year contract at Stade Gerland later this week.
He is keen to move to the dominant force in French football to boost his prospects of reclaiming a place in the national squad.
Lyon's sporting director Bernard Lacombe confirmed the deal for Squillaci, along with the impending departure of Monsoreau to Monaco.
"He has made it known for a year that he wanted to join us," said Lacombe.
"On the other side, Sylvain Monsoreau wished to obtain more playing time.
"Finally, everyone has found an agreement."
Meanwhile, Monaco are continuing their quest for new signings by making moves for Sochaux starlet Jeremy Menez and Strasbourg's Side Keita.
The Principality club are also understood to have been offered the chance to sign Club Brugge's Javier Portillo and CSKA Moscow's Daniel Carvalho.
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Bayern have cantered to the Bundesliga title, Juve are strolling home in Serie A and PSG are untouchable in Ligue 1. But Sky Sports News' David Garrido is urging fans 'strap themselves in' as the championship race reaches a thrilling climax in Spain.
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Michel Bastos claims he would be happy to see out the season at Lyon, rather than secure a switch elsewhere in January.
Lyon won 3-0 at home to Nice on Saturday to go level with PSG at the top of the Ligue 1 table, while Rennes also won.
Lyon maintained their charge for the Ligue 1 title after an easy 3-0 win over Nice at the Stade de Gerland.
Lyon coach Remi Garde says 'fate' drew the French side against former keeper Hugo Lloris' Spurs in the Europa League.
Sky Sports understands a number of Premier League sides are weighing up moves for Lyon ace Michel Bastos.