The 30-year-old was part of France's UEFA EURO 2000™ winning side - scoring the last-gasp equaliser in the final against Italy - and also played in Portugal this summer. He was released by Arsenal FC in the close season, four years after moving to Highbury for a then club-record €21m fee from FC Girondins de Bordeaux. With the latter team he claimed the 1998/99 Ligue 1 title and was voted 1999 French Footballer of the Year.
Wiltord, who had been training with Stade Rennais FC in recent weeks, said of the move: "I was interested in coming here because I have always loved playing for winning clubs. I hope we are going to go far in the [UEFA] Champions League and am confident this club have the potential to clinch a fourth [successive French] title."
He faces an immediate reunion with Arsenal's domestic rivals Manchester United FC when Lyon welcome Sir Alex Ferguson's side for their first UEFA Champions League Group D fixture on 15 September.
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