Aouar is one of the priority targets for the Arsenal and the Gunners have an agreement in place with the player for him to move to the Emirates.
Lyon have already rejected a €38m offer from Arsenal and club president Jean-Michel Aulas claimed that the bid was not even good enough to make him think.
The French giants are prepared to sell the player and while they are prepared to come down from their initial €60m asking price, Lyon will not sell him for a much-reduced fee.
Arsenal have continued to hold talks with Lyon over getting a deal done, but no breakthrough has been made between the two clubs.
And the Gunners are now feeling less confident about their chances of signing Aouar before Monday’s transfer deadline day.
Arsenal could turn their attention towards other targets as time is running out for the Gunners to bring in a midfielder that Mikel Arteta wants.
The Gunners have again started discussing the idea of signing Chelsea midfielder Jorginho in the final few days of the window.
It remains to be seen whether Chelsea will be prepared to let go of another midfielder after allowing Ross Barkley to join Aston Villa on loan this week.
