The 20-year-old has signed a four-and-a-half-year deal at Lyon and cost the club a reported €9million.
“Lyon have bought a jewel of a player. This is a big thing for our club, since we have shown that we are capable of selling a player for a high transfer fee in these times. This is a great move for Dejan and Lyon, and also for the Croatian national side,” said Dinamo sporting director Damir Vrbanovic.
Tottenham and Chelsea were also reportedly interested in the youngster.