With hopes of signing Monaco's Kylian Mbappe - a Real Madrid and Paris Saint-Germain target - fading, Arsenal manager Arsene Wenger hopes to convince another of Ligue 1's star forwards to play at the Emirates Stadium.
Lyon president Jean-Michel Aulas has confirmed talks have been held for Lacazette at a media conference introducing the signing of Mariano Diaz from Real Madrid, but said no deal has been reached.
"There are exchanges and it's true that Arsenal are pressing," Aulas told RMC. "But the moment has not come. I am not ready to give an agreement in the current conditions to Arsenal."
The Gunners are €4m away from Lyon's valuation of Lacazette, 26, and negotiations look set to continue over the coming days as Arsenal hope to seal the deal for the France international.
It is believed Lacazette wants to leave Lyon and was set on a move to Atletico Madrid until the Spanish club’s transfer ban was upheld, preventing a move until January at the earliest.
Any move could end up costing the Gunners €55m (£48m/$63m) plus add-ons. There have been rumours of a swap deal involving Olivier Giroud but Aulas suggested it had not been discussed.
Instead, Diaz, who signed Friday after a reported €8m move, is expected to be Lacazette’s replacement.
The Gunners hope to keep Giroud, although they are prepared to let Lucas Perez - who joined last August but scored only once in 11 Premier League matches - leave the north London club this summer.
Arsenal remain hopeful of a deal for Thomas Lemar as well, but the youngster does not appear ready to force a deal to the Gunners.