Ghezzal, 33, joined Lyon's academy in 2004 at the age of 12 and made his senior debut eight years later. He made 119 appearances for Lyon before leaving in 2017. The 33-year-old winger returns to Lyon as a free agent after a year at Caykur Rizespor.
"Rachid Ghezzal's return goes beyond the sporting arena. It is also a personal and emotional adventure, driven by a shared desire between the player and Olympique Lyonnais," Lyon said in a statement on Friday.
"With his experience at the highest level, Rachid... will also be a valuable link to the young players in the professional squad."
Lyon have won all three of their Ligue 1 matches this season and continue their campaign at Stade Rennais next weekend.