Aouar is regarded as one of the most exciting young midfielders in France and has emerged as a serious target for Arsenal, after impressing as Lyon reached the Champions League semi-final last season.
Arteta has set his sights on strengthening his midfield, after bringing in the Brazilian duo of Willian and Gabriel Magalhaes.
He got prepared to let Matteo Guendouzi leave after a series of behavioural issues and the Frenchman was offered to Lyon in a potential player-plus-cash deal for Aouar.
But according to Juninho, Guendouzi is the “wrong profile” for the club.
“I get on very well with Edu (Arsenal Technical Director), we spoke on the phone,” Juninho told French outlet RMC Sport.
“Aouar is really appreciated by Mikel Arteta.
“Guendouzi was discussed during the call, he is a great player, but he is the wrong profile.
“We are not interested in that at all, we cut the conversation.”