Ghanaian midfielder Michael Essien has signed a four-year contract with French champions Olympique Lyon.

Lyon snapped up the 20-year-old from fellow-French club Bastia for $8 million after Essien's rejection of a move to Paris Saint-Germain.

According to Bastia, the club had signed an agreement with PSG but Essien was not keen on the move.

His decision to move to Lyon was apparently influenced by the prospect of playing Champions League football next season.

Essien was sought by PSG as a replacement for Ronaldinho, who is being tracked by English Premiership champions, Manchester United.

The Ghanaian international may be the ideal replacement for Cameroonian midfielder, Marc-Vivien Foe, who died last week.

Olympique Marseille, Everton and Liverpool also made inquiries about Essien.

The Ghanaian midfielder was a revelation last season in France, scoring six goals in 29 league games.