Report: Lyon expected to reject €35M Arsenal bid for Aouar

Lyon are expected to turn down a €35-million bid from Arsenal for midfielder Houssem Aouar, sources told ESPN's Julien Laurens, but the Gunners are likely to follow up with a higher offer.

Lyon had reportedly been asking for €60 million, but the economic fallout of the coronavirus pandemic forced the club to lower its demands to around €40 million.

Aouar's apparently keen to move to Arsenal before the transfer window closes on Oct. 5.

Arsenal are in the market for a midfielder to complement loanee Dani Ceballos and Granit Xhaka. Atletico Madrid's Thomas Partey is another option, according to The Guardian's Fabrizio Romano, but the north London side is reportedly unwilling to meet the player's €50-million release clause.

Manchester City and Juventus have been linked with Aouar in recent months, but neither side has made a concrete approach for the 22-year-old.

Lyon rejected an earlier offer from Arsenal that included midfielder Matteo Guendouzi as a makeweight. Guendouzi's future had been in doubt due to differences with manager Mikel Arteta; the Frenchman was dropped for the final matches of the 2019-20 season.

Aouar has turned heads since making his competitive debut for Lyon in February 2017. He played in a variety of positions this past season - including out on the left-wing - but starred in a box-to-box role against Juventus in the Champions League quarterfinals. Aouar finished the 2019-20 campaign with four goals and eight assists in all competitions.