Lyon have turned down a second bid from Arsenal for Houssem Aouar, according to reports.
French media organisation RMC have reported that Mikel Arteta's side are back in with another offer for the 22-year-old midfielder.
The French Under-21 playmaker has been linked with Manchester City and Arsenal but the London side appear to be ahead of the pack in the race for the player.
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RMC claim that Lyon have turned down a new bid of 38 million euros for the player.
That bid would represent a slight increase on the club's first bid of 36 million euros, though it has been suggested that Arsenal midfielder Matteo Guendouzi is also part of the proposed deal.
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