OL’s opening offer of €5m was knocked back by Peñarol, who are seeking double that figure.
And according to L’Equipe, Lyon need to move fast because other clubs, particularly Pep Guardiola’s City, are after Pellistri.
City would have no problem financing a €10m deal for the youngster, although his pathway to their first team would be slower.
Along with Lyon, the Citizens are ‘well positioned’ for Pellistri, with Juventus and Man United also at the window.
Lyon’s sporting director Juninho plans to accelerate efforts to sign Pellistri in the coming days.
Last year, the French club staged a coup by beating Atletico Madrid to midfield star Bruno Guimaraes.
And now, they will hope to do the same with Facundo Pellistri, one of South America’s rising stars.