Aouar has been a key summer target for Arsenal as the Gunners strive to add creativity to their central midfield.
Talks have been ongoing between the club, with Arsenal having a first bid rejected by Lyon.
It was thought the Gunners would return with an improved bid in order to get a deal over the line, but according to RMC Sport, Lyon have ended negotiations with all clubs for Aouar and Depay.
The pair will reportedly be included in the squad for Sunday’s game against Marseille and it is claimed that neither will leave Lyon before Monday’s transfer deadline.
More to follow.