"The player arrived late on Friday evening and passed his medical test before signing his contract with the club on Saturday morning, all three parties involved are in agreement," Olivier Blanc, communications director of the French club, told AFP.

The 29-year-old Italian will be present at a ceremony at Lyon's Town Hall to launch the French champions 2007-08 season.

Grosso is Lyon's highest-profile summer signing and will come as much sought after relief by a club who saw the departure of France international left back Eric Abidal to Spanish giants Barcelona.

Lyon, chasing a record seventh consecutive League One title, have also signed Nadir Belhadj from French first division rivals Sedan and Mathieu Bodmer and Kadar Keita both from Lille.

The Italian League champions Inter Milan decided to release Grosso after a below-par season and just one year at the club.

The imposing defender played 23 matches in the league last term, scoring two goals.

He will be bitterly remembered in France for scoring Italy's winning penalty in the final shootout that denied France their second World Cup success.

Grosso will be the third Italian to play for the club since it was founded following Orenzo Dito and Aridex Caligaris in the 1950s.