Umtiti has signed a two-year contract extension, which will keep him in France until 2019. He had apparently been targeted by clubs such as Chelsea, Arsenal and Juventus.
It has been reported that the young French international took a pay raise to stay with his current club.
The 21-year-old defender is considered one of the rising stars of the European game. He helped lead Lyon to a second-place finish in the 2014-15 Ligue 1 standings.
Chelsea are still looking to add one defender to their team as they hope to defend their Premier League title.
They have yet to have any luck in signing Everton centre-back John Stones, as he has been considered untouchable by the Toffees.
Arsenal are also hoping to upgrade their defence, as they are expected to lose Nacho Monreal to Athletic Bilbao.
Video: Danny Ings’ first Liverpool goal: Summer signing off the mark to seal Adelaide United win
New Man United squad numbers: Schweinsteiger, Depay, Darmian & Schneiderlin digits REVEALED
Benteke latest: Liverpool AGREE payment plan with Villa, medical DATE SET, Man Utd STILL in frame