According to reports, Lyon are eyeing up a deal for a potential replacement to outgoing midfielder Houssem Aouar, with them looking at AC Milan outcast Lucas Paqueta.
L'Equipe reported that Lyon had their first bid turned down for Milan playmaker Paqueta.
The Brazilian has fallen out of favour under Stefano Pioli, with him being excluded from the squad in key games.
The initial bid made by Lyon is reportedly a season-long loan with an option to buy for €18 million.
Milan have turned this down as they want the buy out option to be an obligation, and as a result, Lyon have launched an improved bid that has been reportedly accepted by popular football journalist Fabrizio Romano.
Selling Paqueta could help Milan make some more acquisitions before the end of the transfer window.
With Lyon eyeing a deal for Paqueta, it is even clearer that they are preparing for life without Arsenal target Aouar, with the English club being a few steps away from sealing a deal for the Frenchman.
Reports from Fabrizio Romano have claimed that talks between Arsenal and Lyon are ongoing, yet no agreement has been reached as of yet between the two clubs.
Aouar and Arsenal have agreed on personal terms, but negotiations are still on going between the clubs when it comes to the transfer fee.
Paqueta played in 27 games in all competitions last season for Milan, yet he only managed one assist throughout all of those appearances, struggling for form under Pioli.