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Gunners coach Mikel Arteta has made the French midfielder his priority transfer target and Arsenal bosses are determined to hand him over to their coach.
Aouar is believed to be interested in a move to the Emirates, but Lyon have so far rejected his advances.
The Ligue 1 team turned down a £ 32 million offer, but now Arsenal are ready to up the ante.
According to Football.London, Arsenal will offer £ 36.5 million upfront, with an additional £ 9 million in potential add-ons.
They hope that it will be enough to convince Lyon to part ways with Aouar, who played a vital role in their path to the Champions League semi-final last season.
Lyon president Jean-Michel Aulas indicated that he would be willing to sell Aouar for the correct price on Saturday, but suggested that Arsenal were somewhat below his valuation.
“There will be very few exits,” Aulas said.
“For Houssem, Arsenal are too far from their value: we are counting on them to play a great match against Lorient (this weekend) before leading Lyon in the Champions League next year.”
Lyon is believed to have originally only been willing to let him go for £ 55 million, but given the financial pressures as a result of the coronavirus crisis, they are willing to do so. lower that valuation to around £ 36- £ 41 million.
Arsenal’s offer falls within that range and offers the possibility of the rate going up further.
No other club has made a formal approach to Aouar and Arsenal are believed to be at the head of the queue to sign him.
Personal terms are not expected to be an issue, and the 22-year-old is happy to join Arsenal.
Thomas Partey also remains on his radar.
The Atlético de Madrid midfielder is set to move to London this summer, with Arsenal attempting to ditch current members of their squad to raise funds for both midfielders.
Lucas Torreira is a player Arteta is keen to ditch, but his £ 20 million price tag is putting off potential suitors.
Torino sporting director Davide Vagnati said: “Torreira is a top-notch player, but his price is too high. It’s difficult to sign him from Arsenal, not just for us. ‘
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