The Lyon midfielder has been one of Mikel Arteta’s top targets for the transfer window but the French club have already turned down multiple offers from the Gunners.
Arsenal offered Matteo Guendouzi to Lyon in a swap deal involving Aouar earlier this summer but that approach was rejected by the Ligue 1 side.
Lyon also snubbed an offer of £32 million from Arsenal last week and are looking for a fee closer to £55m.
According to L’Equipe, Aouar is keen to leave Lyon before the end of the transfer window but the midfielder is ‘resigning himself’ to joining Arsenal.
The report claims that the 22-year-old had been holding out for a move to either Manchester City or Juventus, who are both in the Champions League this season.
However, Arsenal are the only club to have made an official offer so far and L’Equipe report that Lyon need to make €50m (£45.4m) in player sales before the window closes.
Aouar refused to address his future after Lyon’s 1-1 draw with Lorient on Sunday but insisted that speculation over his future is not distracting the team.
Meanwhile, Lyon’s president, Jean-Michel Aulas, has claimed that Arsenal are still far away from meeting his asking price for Aouar.
‘There was a timid offer,’ Aulas said.
‘We felt like either they didn’t consider the fact that this is a player in the French national team.
‘So it was not an offer that was even susceptible to making us consider a sale.’
‘It’s a week to go, I think it’s going to be really busy for other clubs because not much business has been done. Let’s see what happens,’ said the Arsenal manager.
‘I think it will be busy for the Premier League. Busy for us, I don’t know how it is going to happen.’