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West Ham United are in talks with Lyon to sign Arsenal target Lucas Paqueta, according to reputed journalist David Ornstein.
The Brazil international has been regularly linked with the Gunners this year, and they are yet to make a formal bid.
Technical director Edu Gaspar recently said that he is a huge admirer of him, but the Gunners could now miss out on his services.
West Ham are working behind the scenes on several targets, and they are now in advanced negotiations to land Paqueta from Lyon.
They have proposed to pay around €40m for him, and there are suggestions that Les Gones could be prepared to do business.
It remains to be seen whether Arsenal make their move for the player.
The Gunners want a new central midfielder before the transfer deadline, and Youri Tielemans seems the priority target for the club.
They are yet to make a formal bid for his signature, but it is widely anticipated that there could be one in the coming days.