The French international was the top scorer in Ligue 1 last season with 27 goals (31 in all competitions) and was subsequently linked with Arsenal and Manchester United for much of the summer.
But Lacazette has quietened the speculation by committing his future to the club, extending his current deal out to the summer of 2019.
The agreement was announced at the same time as Lyon unveiled the signing of former-Manchester United defender Rafael da Silva.
Speaking at the announcement as reported by the Daily Mail, Lacazette said: "I am very happy and proud to prolong my deal.
"Now the gossip can stop but I hope people are able to keep talking about me because I'm scoring goals and Lyon are wining things."
The talented French star, 24, was linked with Arsenal and Manchester United thanks to his impressive form in Ligue 1, where he outscored Zlatan Ibrahimovic.
Both Premier League clubs need new forwards - Arsenal have reportedly been chasing Lacazette's international teammate Karim Benzema of Real Madrid.
Manchester United meanwhile let Robin van Persie depart for Turkey and decided not to sign Radamel Falcao after an ill-fated season-long loan.
That's led them to recall Javier Hernandez to the first-team and the Mexican international was in the squad for United's first Premier League match of the season against Tottenham at Old Trafford on Saturday.
However, with options limited to Wayne Rooney, James Wilson and Hernandez it's likely that Louis van Gaal is on the lookout for reinforcements before the close of the transfer window.
What do you think - did Lacazette make the right decision by extending his contract?