The Gunners were heavily linked with France midfielder Aouar prior to Monday's deadline, with the London club eventually moving for Atletico Madrid's Thomas Partey instead.
While Lyon team-mate Memphis Depay has expressed some frustration at not moving to Barcelona, Aouar insisted he remains happy to continue as OL's captain.
"It wasn't necessarily Arsenal or anything else, even if in the end it was about that," Aouar told Telefoot.
"Obviously, we had to make a choice, and I'm happy to stay here. I'm happy to stay in Lyon.
"It's my city, my club - it is a great pride to represent OL.
"I had a lot of discussions with [Lyon sporting director] Juninho. He shows me his confidence every day.
"To stay here for another season, or more, with him is a great source of pride."
Aouar is currently on international duty with France and will hope to win his second cap against Portugal in their Nations League game on Sunday after debuting for Les Bleus in Wednesday's 7-1 hammering of Ukraine.