Lyon has said Arsenal are reluctant to meet their asking price for Houssem Aouar.
The 22-year-old playmaker has emerged as Mikel Arteta's top target this summer.
Aouar became one of the most coveted players in France after he led the Ligue 1 club to the Champions League semi-finals last season.
But with Lyon demanding £44million, Arsenal is struggling to agree on a deal, having splashed out on Gabriel Magalhaes and on Pierre-Emerick Aubameyang's new contract
When asked if a move was likely, Lyon's sporting director Juninho told L'Equipe: "No I don't think so, no offer yet.
"It seems that Arsenal doesn't want to, or can't invest the price for Houssem, who is our best player."
Meanwhile, Dijon goalkeeper Runar Alex Runarsson is set to undergo a medical with the Gunners.
While a deal for Runarsson appears to be close, it is highly unlikely that everything will be completed in time for him to be part of Arteta's squad for today's Premier League visit of West Ham.
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