Arsenal have continued talks with Lyon over midfielder Houssem Aouar.
The 22-year-old has become a priority target for manager Mikel Arteta.
The Gunners have already had an offer of €35m rejected by Lyon, who are holding out for at least €45m plus bonuses.
ESPNsays the north London outfit are prepared to increase their offer and remain optimistic that a deal will be reached.
Talks between the two clubs are ongoing but they must reach a conclusion before the October 5 deadline.
Lyon have already lined-up a replacement for Aouar in AC Milan midfielder Lucas Paqueta, who they will sign for €20m.
The news bodes well for Arteta as he tries to recruit the missing piece of his midfield puzzle.
