France's sports minister Chantal Jouanno has pledged up to €20 million of funding towards Lyon's new Stade des Lumieres.
The proposed new venue, scheduled to be completed in 2014, is one of 11 in the frame as the French Football Federation prepares for a decision on the nine host towns for Euro 2016.
And Jouanno said: "It's a good project which the government has chosen to support with up to €20 million.
"We are still working to a 2014 deadline and we reaffirm our support for this excellent project. It is difficult to imagine the Euro taking place without Lyon involved in some way."
That aside, though, the process of settling on the host venues remains shrouded in confusion after FFF president Fernand Duchaussoy expressed doubt over the May 28 date for the decision.
With federation elections taking place on June 18, Duchaussoy said: "I therefore ask the federal council: Will the current council make the final decision on the nine host towns or will the new executive committee elected on June 18 take charge of the decision?"