Arsenal may be encouraged to step up their pursuit of Houssem Aouar, with Lyon reportedly trying to sign Brazilian star Lucas Paqueta.
According to L’Equipe, the French club offered AC Milan a loan with an €18 million/£16 million option to buy, which has been rejected.

It is understood that Lyon are likely to return with a new offer, with a higher option to buy fee.
The clubs remain locked in negotiations, with Milan preferring an obligation to buy.
Lyon’s supposed desire to sign Paqueta is certainly interesting for Arsenal.
The Gunners are trying to land Aouar and have so far been struggling to make any kind of progress. The latest is that they have had a ‘timid’ bid for the player rejected according to Jean-Michel Aulas (Metro).
But they will be buoyed by the idea of the club’s interest in Paqueta, who is an attacking midfielder like Aouar and can also play out wide just like the Frenchman.

Paqueta can definitely be seen as a potential replacement for Aouar, suggesting Lyon’s stance may ultimately soften.
TBR’s View – Positive news for Arsenal
Lyon’s apparent interest in Paqueta potentially shows that the club are preparing for life without Aouar.
What’s more, Lyon are also set to sign talented Uruguayan winger Facundo Pellistri according to L’Equipe.
The highly-rated South American teenager may or may not also be seen as someone who could provide cover if Aouar departed.
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