Arsenal look set to miss out on Houssem Aouar unless they can raise some transfer funds as Lyon refuse to budge on their demands.
The Gunners are keen to sign the 22-year-old and have already had one bid rejected by the French club.
Matteo Guendouzi was offered to Lyon in part-exchange along with a cash sum of £31.2million.
After that offer was knocked back Arsenal chiefs have been in contact again with Aouar's agent to prepare a second bid.
However Lyon are not willing to accept any swap deals and will only sell the midfielder if their £54.5m valuation is met, which is likely to scupper Arsenal's plans.
Aouar has been attracting interest from the likes of Juventus, Man City and Real Madrid following his impressive displays for Lyon in the Champions League.
Lyon's failure to secure a European spot next season before the Ligue 1 campaign was curtailed has put them in a compromising position with regards to their players.
Memphis Depay is on the verge of joining Barcelona after reportedly agreeing terms over a move, with just a fee left to be agreed between both clubs.
Aouar is believed to be keen on completing a switch to Arsenal but they simply do not have the finances to fund a straight cash deal.
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The same issue is holding up Arsenal's attempts to sign Atletico Madrid midfielder Thomas Partey, who is believed to be the priority target.
Mikel Arteta's only option is to offload some of his current crop but only Guendouzi offers significant value in the market, but finding permanent suitors appears to be proving difficult.
One solution could be for Arteta to consider letting Alexandre Lacazette go.
The forward has been in and out of Arsenal's side under Arteta and is not a guaranteed starter.
Should Arsenal consider selling Lacazette to fund further transfers? Have your say below.
Lyon's sporting director Juninho Pernambucano claimed he spoke to Lacazette previously regarding a possible short-term loan, but there is no indication they would be interested in purchasing the player this summer.
Arteta would rather keep hold of Lacazette but the Gunners' boss has been urged to consider cashing in on the Frenchman.
Former Arsenal legend Ray Parlour told TalkSport last month: "Sometimes you have to lose a player to bring players in.
"You do need to freshen up the dressing room.
"I like Lacazette, he's a decent player, but we have Eddie Nketiah and it's all about whether he can step up now and improve as a centre-forward."
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