Lyon have reportedly rejected a £31.2million bid plus a player from Arsenal for Houssem Aouar.
The 22-year-old has been heavily linked with the Gunners and Man City this summer.
Aouar scored six goals and registered four assists last season
It is understood that Lyon value Aouar, who helped the Ligue 1 club reach the Champions League semi-finals last season, at £45million.
French outlet RMC Sport say a £31.2m bid and a player were offered to Lyon – an off they have snubbed.
While not naming the player, there are suggestions it could have been Matteo Guendouzi, who has been frozen out by Arsenal boss Mikel Arteta.
Guendouzi has not played for Arsenal since allegedly boasting to Brighton players about his superior wages in a 2-1 loss at the Amex Stadium on June 20.
Last month, Aouar gave a cryptic response when asked if it would be hard to leave Lyon without saying goodbye to fans.
Arsenal have been astute with their summer business so far, bringing in Willian on a free transfer from Chelsea, Lille defender Gabriel Magalhaes for £27m and securing Dani Ceballos on another season-long loan deal from Real Madrid.