The Saints have invested heavily this summer, signing the Croatian as well as Victor Wanyama and Pablo Osvaldo, to bring their total spending to £36 million, the third-highest in the Premier League.
Lovren, who is aiming for a comfortable top-half finish this season, told the press: "Every player here thinks we can get into the Champions League within the next two years. It is a big job but everything is possible.
"Playing in the Champions League is an experience you can never forget and I hope to do it with Southampton.
|25/1||Southampton are 25/1 with William Hill to beat Sunderland 4-0
The Croatia international says that the ambition of the Saints and the atmosphere in English football convinced him to make the move.
"Southampton is a big club because I see everything here. I see the organisation and every deal," he enthused. "We do things like the big clubs.
"It was not an easy decision to leave Lyon but, after a discussion with the chairman and the manager, it was an easy decision.
"I love to be part of this project and Southampton really wanted me. It was important for me to know that.
"English fans love football, they have passion – it is not the same in France. It really is something special here."