Lyon have announced plans for a new stadium, set to open in 2010.
Mayor Gerard Collomb has officially started up the project, which will see a new ground erected on the East side of the city.
The name of the new stadium is not yet known, but the expected cost of the development is é¼250million (£170million).
The existing Stade Gerland will become the home of the local rugby team.
Meanwhile, reports in France have suggested Newcastle tried to sign Claudio Cacapa from Lyon in last summer's transfer window.
The Magpies were keen to strengthen their defence before the start of the season and reportedly set their sights on the Brazilian.
Marseille are also believed to have been interested in Cacapa, who opted to stay with the French champions.
Cacapa has fallen down the pecking order at Lyon this season but is rumoured to have agreed a new contract spanning until June 2008.