Arsenal suffer transfer catastrophe as Lyon decide NOT to sell Houssem Aouar with 'all negotiations off'

ARSENAL have been dealt a huge transfer blow after Lyon announced Houssem Aouar will NOT be allowed to leave.

Mikel Arteta will be bitterly disappointed that his top transfer target is due to stay a the Groupama Stadium after the Gunners failed to get near the asking price.

Juventus and Real Madrid had also reportedly shown interest in signing Aouar.

But after Lyon president Jean-Michel Aulas gave a deadline of Friday evening for a deal to be done for the player, the drawbridge has been pulled up.

According to RMC Sport, the Lyon hierarchy have put a halt to any outgoing transfers with the deadline looming on Monday.

It will be a blow to Arsenal's transfer strategy, after they reportedly made two offers for Aouar, but those were millions under the French club's valuation.

They want a full squad available to Rudi Garcia ahead of this Sunday's game against Marseille.

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Lyon had signed Luis Paqueta on Wednesday, while ten players have left the club this summer.

Jeff Rein-Adelaide was due to leave the Ligue 1 club, but he did not reach a personal agreement with Hertha Berlin.

A source told Le Progres: "The deadline has past – neither Memphis nor Houssem are going to leave.

"They will train today and be in the squad tomorrow."

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