The 24-year-old is now tied to the French champions until June 2009, having arrived at Lyon in 2002 from SBV Vitesse in the Netherlands. Lyon president Jean-Michel Aulas said: "I'm delighted."
Diarra has won three French titles at Stade Gerland, establishing himself as one of the best midfielders in Ligue 1. His partnership with Michael Essien has provided the foundation for Lyon's progress to consecutive UEFA Champions League quarter-finals in the last two seasons.
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