The 23-year-old had previously agreed a deal with Turkish club Galatasaray this summer but the move collapsed after a failure in assurance. The failed move gave Celtic a massive boost in their pursuit of the defender who made a strong impact during a loan spell at Parkhead in 2014-15.
The Scottish Sun reported last week that the Bhoys were targeting Denayer to replace Dedryck Boyata who is angling a move away from Parkhead this month.
The report claims that Denayer has snubbed Celtic to agree a deal with the Ligue 1 outfit. He has already arrived in Lyon to complete all the formalities.
Signing a central defender is a priority for Brendan Rodgers this summer. It was a problem area for the Bhoys last season, and recent clashes against AEK Athens and Hearts show that they are lacking leadership qualities at the back.
Denayer, who has already proven himself in Scotland during his time at Celtic, would have been a superb addition to Brendan Rodgers’s side, but failing to land him is a huge blow for the club.