The 23-year-old France striker had always expressed a desire to stay at the Ligue 1 club but the possibility of a move to St James' Park always seemed on the cards.
But any lingering hope that the Frenchman could still join Newcastle in January or perhaps next summer seems to have gone now that he has extended his Lyon contract.
Either that or the forward could leave for a much higher price.
"It's a great moment," Lacazette told the Lyon's official website. "It is a sign of confidence from the club. Now, we can stop talking about that."
Club president Jean-Michel Aulas added: "It is a positive and important moment for the club.
"This signature fits with our policy of producing our own players. Alexandre Lacazette carries our hopes with the France team.
"He has handled the discussion about his future in a mature and intelligent way."
Lacazette recently represented the French national team against Serbia, while he was also voted Lyon's player of the month for August.
Newcastle boss Alan Pardew, though, has stressed the need for his midfielders to score more goals rather than relying solely on his strikers.
"Everybody keeps talking about our lack of strikers but we need to get more goals from midfield and from our defenders," he said earlier today.