Arsenal have had an offer of 35 million euros (£29.3million) for Lyon striker Alexandre Lacazette rejected by the French club.
Lyon also deny that the Gunners have tabled a new bid of 48 million euros (£40.2million) for the 25-year-old French international, who are they insist is not for sale.
"Arsenal made an offer of 35 million euros which Lyon didn't accept for one reason alone - we will keep Alexandre Lacazette," read a statement released by the club.
Arsenal are reportedly ready to spend up to £75million in a double swoop for Lacazette and Leicester's Algerian playmaker Riyad Mahrez, but Lyon are determined to keep the jewel in their crown.
Zlatan Ibrahimovic alone has struck more goals in Ligue 1 over the past three seasons and Lacazette, a converted winger, is thought to be nearing his prime.
"Lacazette is one of the main leaders of Bruno Genesio's squad," Lyon's statement continued.
"We categorically deny having received an offer of 48 million euros from Arsenal for him, as has been reported."
Lacazette has been linked with a number of big clubs since plundering 27 league goals in the 2014-15 season.
The Lyon-born forward is thought to be keen on a move to the Emirates Stadium, but Lyon's financial difficulties are behind them and they are not compelled to sell.
Arsenal are looking to sign a striker this summer after missing out on Leicester's Jamie Vardy.