FC Nordsjaelland signed the Ghanaian winger in January last year but he is now set to move on from the Danish giants this summer.
The 19-year-old wide man has been on the radar of several big clubs, including French champions Paris Saint-Germain.
Tottenham have also been trying to convince him to move to north London but Lyon are claimed to have won the race to sign him.
According to French sports daily L’Equipe (print edition), Nuamah will check into Lyon’s facilities for a medical later today.
PSG and Tottenham were pushing to sign him but the winger ultimately decided to opt for a move to Lyon.
He fits the profile of the player Lyon have been looking for in the ongoing transfer window to occupy their left flank.
A deal is in place between Lyon and Nordsjaelland over a season-long loan deal with a mandatory purchase clause set at €23m.
The French giants have managed to beat competition from clubs with more financial muscle in their pursuit of the Ghanaian.