Arsenal dealt Houssem Aouar transfer blow as Lyon make decision on midfielder

Lyon have confirmed that Houssem Aouar & Memphis Depay will remain at the club after calling off all negotiations according to reports in France.

The pair were both linked with pastures new following impressive showings for the Ligue 1 outfit.

Aouar was a target for Arsenal, who are looking to add a central midfielder before the transfer window shuts.

Thomas Partey was their prime target but attention turned to the Lyon man when it became clear Atletico Madrid were reluctant to sell.

Depay meanwhile had been tipped to follow former Netherlands boss Ronald Koeman to Barcelona.

The Dutchman refused to commit his future to Lyon after scoring a hat-trick on the opening weekend of the season.

But both he and Aouar are set to stay at the Groupama Stadium after the club walked away from the negotiating table, reports RMC Sport.

Arsenal had recently seen a £31m offer for the French midfielder knocked back.

They were then dealt a further blow when it became apparent that Real Madrid and PSG were both prepared to pay the £45m required to sign the player.

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Parc des Princes chief Leonardo has said that the 22-year-old was "a dream for us".

Mikel Arteta meanwhile has reiterated his confidence in the Arsenal hierarchy to recruit the right players to help improve the squad.

"Well, I am very confident in what we are trying to do internally," he said.

Who do Arsenal need to sign before the transfer window closes? Have your say here.

"[I am getting] clarity and support from everybody at the club to try and improve the team if we can.

"But most importantly as well, to get the right balance in the squad, for now and the way we want to evolve the squad in the future."

William and Gabriel are the two big name arrivals at the Emirates this summer with optimism growing in north London.

Arsenal have won two of their opening three Premier League games.

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