The Gunners attempted to land the France international in the summer transfer window, but he remained at the Groupama Stadium after Mikel Arteta's side failed to stump up Lyon's asking price.
Aouar has since played a key role for title-chasing Lyon this term, and it seems unlikely that he will leave in January despite Arsenal's documented pursuit of a new creative midfielder.
Now, ESPN reports that while Aouar is still open to a move to North London, he could hold out for a move to Barcelona or Real Madrid, with both clubs keeping a close eye on developments.
The report adds that Lyon are not prepared to let up on their €60m (£53.2m) valuation of the 22-year-old, although the ongoing impact of the coronavirus pandemic could see the Ligue 1 outfit be forced to accept a lower figure in the summer.
Aouar still has two-and-a-half years left to run on his current deal with Lyon, where he boasts three goals and three assists from 16 top-flight appearances this term. body check tags ::