Belhadj moves from the French side Sedan
French champions Lyon have signed Algerian defender Nadir Belhadj from rivals Sedan.
Belhadj cost Lyon US$4million and signed a four-and-a-half-year contract.
However, Lyon is loaning him back to Sedan until the end of the season and he will join his new club 1 July.
The 24-year-old Belhadj has played 17 times for Algeria and scored five goals in 84 league games for Sedan.
Lyon president Jean-Michel Aulas said Wednesday that the Algerian would make a good addition to the team.
"Nadir Belhadj is an excellent player with big potential," Aulas said.
"He is a player (coach) Gerard Houllier wanted."
Belhadj said he turned down Lens, Lille, Ajax and PSV Eindhoven because "when Lyon make an offer, you can't hesitate for a second."
However, he insisted on helping out Sedan, which is last in the 20-team French league.
"I could not jump ship," he said.
Lyon are the runaway leaders in France with 15 point clear of second-placed Lens.