The 31-year-old will complete the paperwork this week on a transfer worth up to one million euros (£850,000).
A Lyon press release read: "Olympique Lyonnais announce the arrival of Valenciennes midfielder Gael Danic who will this week sign a contract for two years for a transfer fee of 800,000 euros, to which could be added a maximum of 200,000 euros in incentives."
Danic was credited with 11 assists in Ligue 1 last season, a total bettered only by Marseille's Mathieu Valbuena and Lille's Dimitri Payet, despite missing more than two months with a broken arm.
The club earlier confirmed a pre-season friendly against New York Red Bulls on July 16 which will see them come up against some familiar faces.
Brazilian midfielder Juninho heads up a trio of Lyon favourites involved with the Major League Soccer club, having won seven league title in eight years with the club during which he made 344 appearances.
Striker Peguy Luyindula also enjoyed three title-winning seasons with the club while Gerard Houllier, currently global sporting director of Red Bull Soccer, was Lyon's coach from 2005 to 2007.