Arsenal have been handed encouragement in their efforts to sign Houssem Aouar as Lyon would now accept a loan deal for the midfielder, according to reports in France.
The Gunners had made Aouar one of their top targets last summer but their £32 million bid was rejected by Lyon, who were demanding a €60m (£55.5m) fee.
Lyon have been actively looking to sell Aouar during the current window and had even reduced the 23-year-old’s asking price to just £25m.
However, Lyon have received no firm offers for the midfielder and with the transfer deadline closing in the French club are willing to compromise even further to ensure a deal is struck.
According to Get French Football, Lyon would be prepared to let Aouar leave on loan but an obligation to buy would be included as part of the deal.
Arsenal considered reigniting their interest in Aouar this summer but their priority was to secure a permanent deal for Martin Odegaard, which was finalised last week.
Lyon footballer Houssem Aouar following a Lyon defeat.
However, Mikel Arteta is still light of options in central midfield following the departure of Joe Willock, while Lucas Torreira is also set to complete his move to Fiorentina.
Meanwhile, Mohamed Elneny’s future at Arsenal is also in doubt with the Egypt international left as an unused substitute by Arteta in both of the Gunners’ Premier League matches this season.
Tottenham have also expressed an interest in signing Aouar and Arsenal’s rivals have reportedly held talks with the midfielder’s representatives this week.
Aouar still has two years remaining on his current contract with Lyon.