French outlet Telefoot reported on Friday that Aouar has agreed personal terms with Arsenal and the clubs were set for discussions about a transfer fee.
The Gunners are reportedly willing to pay €40million for the midfielder, though Lyon are understood to be hoping for a deal in the region of €60m.
Transferts : Houssem Aouar (OL) d'accord avec Arsenal - @OL :il y aura très peu de départs: pour Houssem Arsenal est bcp trop éloigné de sa valeur: on compte sur lui pour faire un grand match à Lorient et mener l’OL en CL l’année prochaine 👍 https://t.co/8SUKIHLcLJ— Jean-Michel AULAS (@JM_Aulas) September 26, 2020
Aulas confirmed there is a significant disparity between what Arsenal are offering and what Lyon want.
"There will be very few departures. For Houssem, Arsenal are way too far from his value," Aulas posted on Twitter alongside a link to L'Equipe's story on the Telefoot report.
"We are counting on him to play a great match against Lorient and lead OL in the Champions League next year."
Lyon were victorious in their opening match of the 2020-21 Ligue 1 season, beating Dijon 4-1 on August 28, but travel to Lorient on Sunday on the back of a three-game winless run.
The club finished seventh in the league last season and lost the Coupe de la Ligue final to Paris Saint-Germain, consequently failing to secure European qualification.