The 24-year-old, whose transfer was initially announced a week ago, has signed for between 7 and 8 million euros (9-10.3 million dollars) on a four year contract.

The goalscoring midfielder, who netted eight times in 34 Ligue 1 matches for Rennes last season as the club narrowly missed out on UEFA Cup qualification, was also being pursued by Tottenham and UEFA Cup winners Sevilla.

It is the second close season signing for five-in-a-row champions Lyon after already securing the services of midfielder Jeremy Toulalan from Nantes for 7 million euros (9 million dollars).

Kallstrom is currently preparing for the World Cup with the Sweden squad.