Foot Mercato reported on Wednesday that delegates from Arsenal and Liverpool had made "serious" enquiries about the 17-year-old, who turns 18 on June 30.
But it now seems as though the starlet is set to stay with Lyon after Foot Mercato revealed that the youngster had agreed terms on a professional deal with the Ligue 1 side after negotiations with president Jean-Michel Aulas.
The report goes on to claim that Aouar - a forward player who can operate in a number 10 role - is the jewel of Lyon's crown as far as young players go.
At his age, first-team chances were wholly unlikely, but Arsenal manager Arsene Wenger and his Liverpool counterpart Jurgen Klopp like developing young talent so the duo will be disappointed with this development, if true.
He may have also earned one or two cameo appearances in lesser competitions such as the Capital One Cup had he join the Gunners or Liverpool.