Arsenal are reportedly preparing an improved bid for Houssem Aouar after Lyon rejected their first offer for the midfielder.
Lyon's sporting director Juninho has revealed Mikel Arteta's side have made the first move for Aouar, who is also believed to be on Manchester City's radar.
However, the Ligue 1 side were not interested in signing Gunners midfielder Matteo Guendouzi as part of a player-plus cash swap deal.
And the French club also rejected a £31.2million bid from Arsenal, according to ESPN. Lyon have made it clear they will not accept less than £54.5m for France under-21 international Aouar, who is contracted to the club for another three years.
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