The much coveted 22-year-old has been on the radar of Europe’s leading clubs after his performances in the past two seasons.
Manchester City were also keen on the OL homegrown talent, but also haven’t followed up.
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Arsenal now have a great opportunity to sign Aouar, who has warmed to the idea of joining Mikel Arteta’s side.
The two clubs will begin formal discussions in the coming days to negotiate the transfer fee for Aouar.
Aouar has already made 139 appearances for Lyon with a return of 24 goals and 27 assists.