France international Grenier is seen as an ideal replacement for his countryman Yohan Cabaye - who left for Paris Saint-Germain on Wednesday - at St James's Park.
With the transfer window set to close on Friday, the Newcastle boss confirmed that negotiations are taking place between the clubs over a prospective deal.
When asked if Lyon had responded to a bid from the Magpies, Pardew told reporters: "Not in terms of if the deal is finalized or is finished, so it's ongoing as far as I'm aware."
Pardew remains hopeful of signing the midfielder but is unsure of whether the Magpies will be able to complete the deal before the transfer deadline on Friday.
"It's two days left, we'll have to wait and see," he said. "I'm obviously hopeful and that's really where I sit today."
The Newcastle boss believes that Grenier boasts the sort of qualities which would make him a suitable replacement for Cabaye.
"I think he has tremendous creative, technical ability," he said. "I think he is a player Newcastle fans would love to see at the football club but he's still not our player so, until he is ... I'll wax lyrical about him then."