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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