The new deal will keep the Brazilian at the Stade Gerland until the summer of 2015.
“I am very happy to have signed and my family are happy too,” Bastos told the club’s official website.
“Talks didn’t last long because everyone was in agreement.
“It is with great pride that I will continue my adventure with Lyon. I see no reason why I cannot see out my career here.
“It is true that I had offers to leave in the summer, but when a club like Lyon offers you a two-year extension, it makes you think.
“I have no regrets. I want to win titles and I believe we can achieve something this season with a great squad.”
