Aouar is in the final year of his contract and has been heavily linked with a move away from Lyon this summer.
Nottingham Forest seemed like his destination until recently after he agreed on personal terms with the player but the newly promoted Premier League club left Lyon annoyed.
They offered to pay a €10m fee over six instalments, which left the Lyon hierarchy angry and they were quick to reject the offer.
Forest are still in touch with Lyon but according to French outlet Foot Mercato, Nice are pushing to sign the midfielder from the French giants at the moment.
Favre has identified Aouar as a priority target in the final week of the transfer window and is pushing Nice to get a deal done.
However, a deal is likely to be complicated as Lyon do not want to sell one of their best players to a direct competitor.
Nice believe they have a chance given the lack of options Lyon and Aouar have at a late stage of the window.
Lyon are hopeful of selling him to a club outside England and want €15m from his departure.
