Arsenal's hopes of signing Houssem Aouar from Lyon this summer have reportedly been hampered by rival interest from an unnamed Champions League club.

Aouar is understood to be one of Arsenal's top targets for the remainder of the transfer window as manager Mikel Arteta attempts to bolster his midfield ranks.

However, Lyon's £54m asking price is proving to be a major hurdle in negotiations, particularly as the Ligue 1 club are unwilling to accept Matteo Guendouzi as part of the deal.

Lyon president Jean-Michel Aulas recently publicly questioned whether Arsenal have the means or desire to push through a deal this summer.

The Gunners' chances of landing the 22-year-old now appear to have been hit further, with The Telegraph reporting that an unnamed Champions League club have joined the race for his signature and have submitted an offer to Lyon.

Juventus and Bayern Munich are among the clubs thought to be tracking Aouar, while Manchester City have also previously been linked.

In addition to Aouar, Arsenal are also considering moves for Thomas Partey and Amadou Diawara before the end of the transfer window next month.