The Gunners are keen on signing the 23-year-old, who has been excellent in Ligue 1 over the last few seasons.
The French midfielder has long been mooted to join a marquee club after impressing at Ligue 1 over the last few seasons.
However, their interest in Aouar remains intact, and they want to sign him in the current transfer window.
According to ESPN, Mikel Arteta’s side have lodged a bid which is said to be close to Lyon’s asking price of 25m euros.
Arsenal are tasked with strengthening the midfield as they have recently parted ways with Matteo Guendouzi, Martin Odegaard, while the futures of Dani Ceballos and Emile Smith Rowe are up in the air, with the latter one being linked with Aston Villa.
Aouar can bring a lot to Arteta’s side as his versatility coupled with the goal-scoring knack has been a massive asset to Lyon.
It has been rumoured recently that the French U-21 star didn’t turn up for training in order to choose his next destination. However, it was later denied by the player himself.
Aouar said: “Once again, unfortunately, another fake news was published across social media,”
“I don’t usually answer what’s been said about me… I was sick and hospitalised over the weekend.
“I am doing much better now, and I am ready for what comes next.”
The Gunners have to be aware of the interest from PSG, who are already making moves in the transfer window and also keeping tabs on Aouar.