Arsenal are set to lose out to Atletico Madrid in the race for Lyon midfielder Houssem Aouar, according to a report.

The France international was strongly linked with a move to the Emirates over the recent summer and winter windows, but a transfer never materialised and he stayed put at Lyon.

Aouar ultimately chipped in with seven goals and three assists from 30 Ligue 1 appearances last term, but the season ended in somewhat disappointing fashion as Les Gones - previously tipped for the title - had to settle for Europa League football.

Arsenal have supposedly revived their interest in Aouar, but according to Le 10 Sport, La Liga champions Atletico are at the head of the queue for the midfielder's services.

The report claims that Aouar has been swayed by the opportunity to play in the Champions League, and Arsenal could seek out another Ligue 1 starlet as an alternative in the form of Rennes' Eduardo Camavinga.

Aouar has recently witnessed his former Lyon teammate Memphis Depay secure a move to Barcelona, and his existing contract at the Groupama Stadium will expire in 2023. body check tags ::