The Ligue 1 giants have been tracking the 18-year-old Uruguayan winger for several months and are keen to take him to Europe before next month’s transfer deadline.
Lyon failed with a bid worth €4m earlier in the window and they decided to bide their time before considering a second offer as they wanted to sell an attacker.
With Bertrand Traore on the verge of joining Aston Villa, Lyon are trying again and have sent another offer to Penarol for Pellistri.
According to French sports daily L’Equipe, the new bid is worth €5m and 40 per cent of any transfer fee Lyon would get from selling the young winger later in his career.
Lyon are keen to get the deal done but are facing competition for club such as Manchester United, Manchester City and Juventus.
Manchester United have taken the opinion of former Penarol coach Diego Forlan and have received glowing reports on Pellistri.
But the French giants have a slight advantage as the youngster is keen on the move following learning about Lyon’s plans for him.
It remains to be seen whether the fee on offer is good enough to convince Penarol to cash in on him.
