Chelsea have agreed a fee of around £6.8 million with the French champions, with the player now only having to concur on personal terms before his exit can be confirmed.
Tiago and his agent, Jorge Mendes, are already in Lyon — where the player will undergo a medical and tie up the final details of his contract.
“All is practically closed and it is the best exit for Tiago as he wants to play more regularly,” confirmed Mendes.
Tiago wants to cement his place in Portugal’s World Cup squad and is desperate to play regularly in order to do so.
“If I want to play the World Cup 2006, I need minutes,” said Tiago.
“With the arrival of Essien my situation was complicated and this proposition of Lyon is excellent.
“The option of the Champions League is magnificent.”
It is believed that Tiago will put pen-to-paper on a five-year contract in the next few days.
Tiago undergoing medical · Update
Tiago is currently undergoing a medical at Lyon after the two clubs agreed a fee in the region of £6.5m.
Tearful Tiago leaves for Lyon · Update
He bade farewell to his team-mates and Jose Mourinho yesterday when he told them he would be leaving for Lyon and not returning.
Mourinho said: “The deal is almost done. There are a few details to complete, that is all. But Tiago showed a lot of tears in front of the group yesterday. He is a wonderful boy and was a very good player for us. We will miss him — the player and the person.
“Yesterday he told me he was going to Lyon and that he probably wouldn’t be back. It was very emotional for everybody and everyone was really disappointed. He did it in a very professional way. He said: ‘Boss I feel very sorry to go, I love it here, but I am professional and want to play more times.’
“Lyon’s proposal was also a good one for Chelsea. He added that he would like to go because it is a World Cup year and it was clear the boy wanted to go.
“There were a lot of clubs interested in him and he understood that he wasn’t first choice. Teams from England, Spain and Portugal were interested in him but he chose to go to Lyon and we wish him well.”
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Lyon complete Tiago signing · Update
The €10m transfer of Tiago to Lyon has finally been fully agreed this afternoon [Tuesday August 30th], and now the clubs and player just await international clearance.