Fofana signed for the French giants almost six years ago but has played fewer than 100 games for the club in all competitions due to a chronic ankle injury.
The 25-year-old has not played a single minute for the first-team this season and made only two appearances for Lyon in total during the 2015/16 campaign.
Due to feeling yet more pain and failing to fully recover from the injury, Fofana has revealed in an interview with the club’s official website that he’s retiring from playing the game.
“After my last game against Grenoble, my ankle was again very painful,” he said. “I let the inflammation subside and then I followed a new protocol after the summer.
“I made time to try and give my ankle time to regenerate. I have really tried everything but today I am unfortunately obliged to note that it is no longer possible. The state in which my ankle is in does not allow me to play football.
“Yes, I tried everything,” he said when asked if this was his final decision. “I had several interventions, made every effort, took all the necessary time, but the record is there, it is a terrible observation but I was declared unfit for the practice of soccer.”
The midfielder may well stay at Lyon in some capacity, though, with the club’s president Jean-Michel Aulas offering him a new role.
“After I was declared unfit, I met President Aulas and he explained to me that he wanted to keep me at the club,” he added. “I will take time to reflect because I have already had several proposals in and outside of football but I think I will choose to stay at the OL.
“I liked the words and the project of Jean-Michel Aulas – I will decide very quickly.”
Fofana scored nine goals in total for Lyon with his last coming during the 2013/14 season when he netted four times from 33 appearances.
His best ever scoring season came the year before when Fofana hit the back of the net five times in all competitions, but his career comes to an end after just 162 club appearances and two caps for France Under-21s.