Liverpool and Manchester United are on alert after Lyon reportedly slashed the price tag for midfielder Houssem Aouar.
Arsenal led the race for his signature last summer and tabled a bid in the region of €40million (£34m).
But they saw their offer rebuffed by Lyon sporting director Juninho with the club demanding at least €52m (£45m).
Lyon have reportedly slashed the price tag for midfielder Houssem Aouar to just £21m
However, a bid of just €25m (£21m) may be enough to prise Aouar from the Ligue 1 club this summer, according to the Daily Mirror.
Arsenal still lead the race for his signature but north London rivals Tottenham have also expressed an interest in the France playmaker.
Mikel Arteta’s side had bids rejected by Lyon last summer with the club insistent they wanted to keep him, but French teams are under increased financial strain ahead of the new season due to a crisis over TV deals.
According to le10sport, the Gunners submitted a fresh bid for Aouar last week, with a move likely to be more feasible with Lyon willing to accept significantly less than the £45m they demanded last summer.
Tottenham are believed to be considering him as one of Nuno Espirito Santos’ first signings
However, the same publication have reported that Arsenal will face competition for his signature, with Tottenham now considering a potential move due to the midfielder’s apparent availability.
New boss Nuno Espirito Santo will be tasked with getting Spurs back into the Champions League, after last season’s 7th place in the Premier League, and the signing of Aouar would undoubtedly help in that push.
The 23-year-old made 30 Ligue 1 appearances last campaign, after he had put the disruption of a potential move behind him.
He chipped in with seven goals and three assists, helping Lyon to finish fourth but only seven points behind league winners Lille.
But Mikel Arteta and Arsenal have long been interested in bringing the midfielder to England
After reports emerged recently that he had missed training to try and force a move away from the French club, Aouar confirmed on social media that this was not the case.
He posted: ‘Once again, unfortunately another fake news was published across social media.
‘I don’t usually answer what’s been said about me… I was sick and hospitalised over the weekend.
‘I am doing much better now and I am ready for what comes next.
‘Thank you to those who have always supported me, in the good as well as in the mad moments. Go OL!’
- Mercato | EXCLU – Mercato – OL : Arsenal vient de dégainer pour Aouar !
- Mercato | EXCLU – Mercato – OL : Tottenham pense aussi à Aouar
- Houssem Aouar’s four Premier League suitors, bargain price tag and Liverpool stumbling block – Mirror Online