Lyon, along with several other top Ligue 1 clubs, appeared before the National Management Control Directorate (DNCG) to undergo a review of their financial situation.
According to RMC Sports, a decision has now been made, and the French giants will be playing in Ligue 2 next season.
Les Gones were handed a provisional relegation during their last meeting with the DNCG last November as they were informed it would become official if they didn’t improve their financial situation.
Eagle Football Group, the consortium that owns OL, has taken several financial measures in an effort to convince the DNCG of significant improvement in the club’s financial health.
Majority owner John Textor has sold his stake in Premier League side Crystal Palace, and Lyon’s women’s team but has still fallen short of the necessary requirements.