According to ESPN, the three Premier League clubs have entered the race with Arsenal to sign the Frenchman this summer.
While Aouar still has two years left on his current contract with Lyon, the Ligue 1 club reportedly want to sell him this summer in order to avoid potentially losing him for a cheaper fee next summer.
Mikel Arteta's side will face very stiff competition for his signature, with him being appreciated by several clubs from across Europe, with clubs from the Premier League being the favourites to sign him.
Manchester United are currently looking at Aouar due to the uncertainty surrounding Paul Pogba's situation at the club, with Paris Saint-Germain reportedly considering a move for the midfielder.
Ole Gunnar Solskjaer has indicated to the club that he sees Aouar as a good replacement for Pogba, according to reports.
Liverpool are also trying to find a replacement for Georginio Wijnaldum, with the Dutch midfielder joining PSG on a free transfer, and sources claim that Liverpool have been monitoring Aouar's progress at Lyon for for a while and might be tempted to make an offer for him.
Despite this, Liverpool have a mixed relationship with Lyon after a move for former attacking midfielder Nabil Fekir failed to materialise in 2018.
However, sources from ESPN have claimed that Arsenal and Spurs are currently leading the chase for him, despite there being interest from United and Liverpool.
Arsenal are still leading the pack, despite Lyon rejecting an initial €40 million bid for him last season from the Gunners.
Due to the departure of Dani Ceballos and Martin Odegaard, Arsenal are looking at options in the market to sign a creative midfielder, especially after missing out on Emiliano Buendia to Aston Villa, and this summer, only €25 million could be enough to sign Aouar.
However, Arsenal are limited in terms of funds, especially since they are on the verge of completing the signing of Albert Sambi Lokonga from Anderlecht for around €21 million.
On the other hand, Spurs have a great relationship with Lyon due to their negotiations with regards to Tanguy Ndombele and Hugo Lloris's moves over the years, and they are also looking for a player of Aouar's profile this summer.
Aouar and Ndombele were brilliant together at Lyon, and Spurs could be set to reunite the pair ahead of the coming season.