Arsenal are preparing to launch an improved bid of €40 million (£33.7m) to Lyon for striker Alexandre Lacazette, according to Squawka.
Lyon had earlier this week turned down a £29.5m (€35m) bid from the Premier League giants for the 25-year-old France international while insisting that the player is not for sale.
Arsenal boss Arsene Wenger is desperate to bring in a quality striker to the Emirates Stadium to add more firepower to his attack ahead of the new season and sees Lacazette as a viable option.
Lacazetta was a standout performer for Lyon in 2015-16 season, having bagged 23 goals in 44 appearances in all competitions.
Overall, he has scored 92 goals in 230 appearances for Lyon since making his senior club debut in 2009.
Besides Arsenal, the Frenchman has also attracted interest from a host of other top European clubs this summer, including West Ham United after an impressive last season.
Wenger has made Lacazetta his top target and after missing out on Leicester City forward Jamie Vardy.
The England international, who scored 24 goals in 38 appearances to help Leicester clinch their first Premier League title last term, was strongly linked with a move to Arsenal after the Emirates club triggered his £20million release clause.
Squwaka understands that apart from Lacazette, another striker on Arsenal’s radar is Alvaro Morata, whom Real Madrid brought back from Juventus for €30 million last month after activating their buy-back clause.
The 23-year-old Spain international had joined Juve on a five-year contract for the fee of €20 million in 2013but the deal authorised the La Liga giants to buy him back in the future.
During his two-year stay at the Serie A club, the Spaniard scored 27 goals in 93 appearances.