West Ham have signed Brazil midfielder Lucas Paqueta from Lyon for a club-record fee.

Paqueta moves to east London from Lyon for a reported £36.5million (€43m) fee in a deal that is said to also include a further £14.4m (€17m) in potential add-ons.

The 25-year-old has signed a five-year contract with an option for further year. Paqueta had previously been linked with a reunion with former Lyon team-mate and fellow Brazil international Bruno Guimaraes at Newcastle United.

However, he will now be a rival to his compatriot after becoming West Ham's eighth signing of the transfer window.

"I am extremely happy to be here. I hope it's the beginning of an enjoyable journey. I hope my time here is successful," Paqueta said.

"Last season, West Ham had a very good season and I hope they continue to enjoy more and more good seasons in my time at the club.

"I am excited to pull on the West Ham shirt and show the fans what I can do."

West Ham made a dismal start to the new Premier League season, losing their first three games without scoring a goal, but bounced back by beating Aston Villa 1-0 on Sunday.

They will look for Paqueta to greatly improve their creative output when he slots into the midfield alongside England international Declan Rice.

Paqueta scored nine league goals last season, with only five midfielders in Ligue 1 finding the net more often. He also laid on six assists and created 41 chances.

The former Milan playmaker, who will wear the number 11 shirt, could make his West Ham debut in the London derby with Tottenham on Wednesday.