Arsenal are ready to come back with an improved bid for Lyon midfielder Houssem Aouar after seeing their initial offer swiftly rejected, according to a report.

Earlier this week, Lyon president Jean-Michel Aulas took to Twitter to confirm that the Gunners had tabled a bid for the Frenchman, but the offer was too little for Les Gones to consider a sale.

However, Arsenal are reportedly determined to land the 22-year-old before the transfer window shuts on October 5, and the Gunners are now preparing a significantly improved offer for the highly-rated Frenchman.

According to football.london, Arsenal's fresh bid for Aouar will include an initial fee of £36.5m, plus £9m in add-ons and performance-related bonuses.

Given the need for clubs to balance the books after being severely hit financially during the coronavirus pandemic, there is a suggestion that Lyon could be willing to accept a lower figure than the £55m that they were originally holding out for.

However, with a deal yet to be agreed for Aouar, the midfielder is set to be included in Rudi Garcia's squad for Lyon's clash with Lorient on Sunday.