Arsenal are looking to offload Alexandre Lacazette and replace him with Moussa Dembele.
French striker Lacazette is entering the final year of his contract at Arsenal.
The Gunners want a major overhaul of their squad this summer and are prepared to bid farewell to Lacazette.
According to The Telegraph, Mikel Arteta wants Dembele as his replacement.
Dembele, 24, spent half of last season on loan at Atletico Madrid from Lyon.
The Spanish champions are not expected to activate a £30m option to make the deal permanent.
Gunners director Edu is confident of whittling down that price to £25m given Dembele's lack of playing time over the past 12 months.
The former Celtic man scored 44 goals in his first two seasons in Lyon and may need a new challenge to re-ignite his career.
