When Remi Garde took charge of Lyon this season, he was given a one-year contract, told he had no money to spend and inherited a squad low on morale following a tough season under the rigid leadership of former coach Claude Puel.

Several months later, Garde has restored team spirit, has the team playing attractive, attacking football, and successfully blended in youth players while instilling a resilient streak that was lacking under Puel.

Despite trailing in their last three matches, Lyon have bounced back to either win or draw, and they are unbeaten in their last five matches ahead of Saturday’s home game against struggling Caen.

“This team has a lot of character, a lot of heart,” Garde said after Lyon came from behind to beat Bordeaux 3-1 in the French Cup on Wednesday. “It’s tough to beat us at the moment.”

Although seven-time former champion Lyon are in fourth place and 10 points behind leader Paris Saint-Germain, the fact they still have an outside shot at winning the title is testament to Garde’s innovative, risk-taking approach.

He has put his trust in young players such as striker Alexandre Lacazette, midfielder Clement Grenier, centre back Samuel Umtiti, who all played under Puel when he was Lyon’s youth team coach. Plus, he has not been afraid to drop Yoann Gourcuff.

Gourcuff has failed to live up to expectations since joining Lyon for 22 million euros from Bordeaux last season. While Puel stubbornly stuck by Gourcuff, Garde has chosen a different approach.

Garde has been fair with Gourcuff, starting him in six league games and four Champions League matches, but has now put him on the bench. The 21-year-old Grenier, a reserve team player last season, has taken his place.

Garde has not given up on Gourcuff, praising him for his part in setting up Lacazette’s equaliser against Bordeaux.

The 20-year-old Lacazette, another graduate from Lyon’s youth team, has scored four goals in his past three games and is challenging Bafetimbi Gomis for a regular starting spot alongside Lisandro Lopez.

Lacazette, who scored the winning goal when France beat Spain to win the under-19 European Championship in 2010, has thanked Garde for giving him a chance to prove himself at a higher level. Grenier also played in the under-19 final.

“Since I have the trust of the team and the coach, it’s easier for me out on the field,” Lacazette said.

Lyon also trailed 2-0 away to Marseille in the league last weekend but fought back to draw 2-2, a few days after coming back from 2-0 down to beat Lorient 4-2 and reach the League Cup final.

“Everyone in the squad is ambitious and is doing their part,” Garde said. “The attitude of the players who come on is remarkable. It’s a good sign.”

Even Gourcuff, so woefully out of form this season, showed glimpses of his talent on Wednesday, most notably with a superb dragback and flick over the defense in a move that led to Lacazette’s goal.

“That will do him some good,” said Garde, who remains friends with Arsenal coach Arsene Wenger, having played for the Gunners between 1996-99. Garde also scored 22 goals in 145 league games for Lyon as a skillful defender.

Meanwhile, Montpellier will look to keep the pressure on PSG when they play resurgent Ajaccio at home on Saturday. Ajaccio have hauled themselves off bottom spot by winning four and drawing two of their past six league games.

Many observers tipped Montpellier to fade after the Christmas break. However, led by 15-goal top scorer Oliver Giroud, the title challenge is gaining momentum and the team remain only three points behind PSG, who are away to Nice on Sunday.

Even though Nice are struggling in 18th place, they always make things hard for PSG at Stade du Ray.

“They are in quite a precarious position, but Nice will be waiting for us,” PSG defender Christophe Jallet said.

Defending champion Lille look to bounce back from their French Cup loss to Valenciennes when they take on Bordeaux at home. Lille are 10 points behind PSG in third place and ahead of Lyon on goal difference.

In Saturday’s other matches, it is: Auxerre v Lorient; Evian v Marseille; Valenciennes v Nancy; Brest v Dijon, and Rennes v Sochaux.

Toulouse face Saint-Etienne in Sunday’s other game.