Lacazette, the French midfielder who was part of the France squad that won the World Cup in Russia last year, is set to sign a new contract extension with Lyon FC.
The agreement, which has been under discussion for several months, will see Lacazette stay at the club until 2024 and provide him with a three-year deal.
"The club has worked hard throughout the negotiations to find a solution that benefits both parties," said Lyon FC president Jean-Michel Aulas. "We have made progress and I am confident that we can reach a mutually beneficial agreement."
Aulas added that the club had also sought to increase the value of the player's contract by offering him more money and flexibility in his playing style.
The move comes as a surprise for Lacazette, who had expressed concerns about the financial aspects of the deal, but it appears that he has now found a way forward.
"I'm really happy to be back here," Lacazette said after signing his contract. "It feels good to be part of such a strong team and to continue contributing to their success."
The agreement also includes a clause that allows the club to decide whether or not to renew Lacazette's contract beyond 2024.
"It's great to see the club continuing to work towards a long-term partnership," Lacazette added. "I look forward to continuing to play for Lyon and helping them achieve success on the pitch."