Brazil midfielder Lucas Paqueta has signed for Lyon from AC Milan on a five-year deal for a fee of €20 million ($23.4m), the French club announced on Wednesday.
"He is joining us for five seasons. He already knows some of the players in our squad and we are convinced he will quickly settle in," said Lyon president Jean-Michel Aulas before confirming the fee.
Paqueta, 23, had earlier arrived in the city to undergo a medical. Capped 11 times by Brazil, he joined Milan from Flamengo in January last year but failed to properly settle at San Siro.
"Good luck to Lucas. He is still a good player and I told him to have full belief in his own ability," said Milan coach Stefano Pioli, who was speaking ahead of his side's Europa League play-off tie against Rio Ave in Portugal.
The Lyon squad already features several Brazilians, including Paqueta's fellow midfielder Bruno Guimaraes. The club's sporting director Juninho is also from Brazil.
Paqueta's arrival at last season's Champions League semi-finalists could smooth the way for Houssem Aouar to leave the club. The midfielder has been linked with Arsenal and Juventus.
Jeff Reine-Adelaide could also leave Lyon, with Aulas indicating there are two offers on the table for the France Under-21 midfielder. Those are thought to be from Rennes and Hertha Berlin.
Another player set to come to Lyon is the 18-year-old Uruguayan winger Facundo Pellistri from Penarol.