The 22-year-old has been repeatedly linked with a move away from Stade Gerland, but Garde continues to reiterate that Grenier will not be leaving.
“Grenier is a player for the future of this club,” the 46-year-old told L’Equipe.
“I was adamant in my decision not to allow him to depart for Nice last summer.
“I think he showed in the matches before his injury that I was not wrong. We are now trying to work out a suitable contractual extension that would satisfy all parties.”
Lyon are joint top of Ligue 1 with Paris Saint-Germain and Marseille, and Garde has said the club will continue strengthening their ranks in the coming weeks.
He added: “The market is very quiet today, but anything and all can happen before it closes. For that reason, we will keep an eye open till January 31.”
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- Stade Gerland