Former Liverpool winger joins top Major Soccer league club until 2024
The 30-year-old, who only joined Lyon from Liverpool in August, has signed a contract until 2024.
French club said the fee involved in his move to Chicago Fire was 7m euros (£5.9m).
“Xherdan is a game-changing player and someone who will bring joy to our fans and the city of Chicago,” said the MLS club’s sporting director Georg Heitz.
Shaqiri will be one of Chicago Fire’s designated players, which means his wages do not count towards the MLS salary cap.
Heitz added: “As one of the most accomplished Swiss athletes of his generation, Xherdan joins us at a very important time for the club and fully believes in what we are aiming to accomplish.”