Rudi Garcia cited PSG's stunning last-gasp revival against Atalanta as a source of motivation for his side, who face City in Lisbon on Saturday.
PSG scored twice in stoppage time to snatch victory from the jaws of defeat, while RB Leipzig reached the last four for the first time with a late 2-1 triumph over seasoned campaigners Atletico Madrid.
Both of those results – as well as Lyon's last-16 success over Juventus – gave Garcia cause for optimism as he looked ahead to taking on Pep Guardiola's City, themselves eyeing a maiden Champions League title.
"It would be historic to have two French clubs in the semi-finals, we must be inspired by what PSG did," said Garcia.
"Having eliminated Juventus, that must give us confidence.
"We want to stay a long time in Lisbon, even if City are the big favourites of this confrontation.
"But the start of the quarter-finals showed that favourite teams can be roughed up."
Garcia is ready for the fact City are likely to have more of the ball, but the Frenchman is backing his side to stand up to the challenge.
"We know very well that we will not win the battle of possession against this team, because it is part of its identity," said the former Roma coach.
"But we must not let this team and its individualities pose problems for us. But it's not the system that matters, it's what you put in it, the animation.
"You also have to be able to press high and play with our strengths."
The two teams met in the group stage of the 2018-19 Champions League, with Lyon earning a 2-1 win at the Etihad Stadium following a 2-2 draw on home soil.