Telefoot says Aouar has been one of Mikel Arteta's top targets all summer, but there have been suggestions that the Gunners could be beaten to his signature by a club who could offer Champions League football this season.
Juventus and Barcelona were said to be two clubs that Aouar had hoped to join, but now he has given up on moving to either Turin or Catalonia after no concrete offers for him emerged.
They add that he will instead look to complete a switch to north London this summer, with Arteta desperate for him to join.
Gunners technical director Edu is now set to hold talks with Lyon to finalise the deal.
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