We investigate the chiral properties of overlap lattice fermion by using tw
o-dimensional Gross-Neveu model coupled with a gauge field. Chiral properti
es of this model are similar to those of QCD(4), i.e. the chiral symmetry i
s spontaneously broken in the presence of small but finite fermion mass and
also there appears the chiral anomaly because of the coupling with the gau
ge field. To take into consideration Luscher's extended chiral symmetry, we
insert overlap Dirac operator even in the interaction terms so that the wh
ole action including them are invariant under the extended chiral transform
ation at finite lattice spacing though the interaction terms become nonloca
l. We calculate mass of the quasi-Namb-Goldstone boson as a function of the
bare fermion mass and two parameters in the overlap formalism and find tha
t the quasi-Nambu-Goldstone boson has desired properties as a result of the
extended chiral symmetry. Furthermore we examine the PCAC relation and fin
d that it is satisfied at finite lattice spacing. Relationship between the
anomaly term in the PCAC relation and the U(1) problem is also discussed.