New Spurs boss Nuno Espirito Santo wants to strengthen his attacking options by signing the Lyon playmaker, according to the Daily Mirror.
And the Gunners’ £30million swoop for Real Madrid midfielder Martin Odegaard has opened the door for their north London rivals to sign the Frenchman.
Aouar scored eight goals and provided four assists in 33 appearances for the Ligue 1 side last season.
But the 23-year-old is among several Lyon stars placed on the transfer list by Lyon sporting director Juninho.
Reports in France claim the Brazilian is so keen to sell Aouar that the club are willing to lower his £25m price tag.
Aouar was a top target for the Gunners last summer, but club chiefs failed to thrash out a deal with the French side.
Arsenal hope to reach an agreement with Real Madrid this week for the transfer of Norwegian ace Odegaard.
The Gunners had opened a dialogue with the Spanish giants earlier in the summer over a permanent deal, after the Norway captain impressed on loan during the second half of last season.
Boss Mikel Arteta has remained determined to bring in a playmaker and now Sportsmail understands hands are about to be shaken on a deal worth in the region of £30m (€35m).
On Wednesday, Odegaard was absent from Real Madrid’s training session, while the fine print of the deal was being discussed.
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