The 18-year-old winger has been tipped to cross the Atlantic before the end of the ongoing window, with several clubs in Europe interested in signing him.
Manchester United have tapped up Diego Forlan, the winger’s former coach at Penarol, to enquired about him and have been keeping close tabs on his progress.
Juventus have also shown an interest in taking him to Italy, but Lyon are the ones who have made a concrete effort to sign him.
They failed with a bid earlier in the window, but according to French sports daily L’Equipe, they are now close to agreeing on a deal with Penarol for his signature.
The two clubs are finalising the minute details of the agreement and Pellistri is expected to travel to France later this week.
Penarol’s Copa Libertadores game against Colo-Colo tonight is likely to be his last game for the club.
The Uruguayan club are set to bank a fee of €5m and another €2m in bonuses from the deal and will also reserve a 40 per cent sell-on clause in the agreement.