Starsport understands a deal worth more than £60m for the French playmaker is “almost done” paving the way for Mesut Ozil and Alexis Sanchez to leave.
Manchester United target Ozil and Manchester City target Sanchez could now be allowed to leave in the January transfer window with the Gunners confident of snapping up Fekir.
The 24-year-old can play as either a striker or a No.10 with Lyon owner and chairman Jean-Michel Aulas calling him “my Lionel Messi”.
If the Gunners can clinch the deal, Fekir would link up again with Alexandre Lacazette, his former team-mate at Lyon.
Arsenal are understood to be ready to accept as little as £30m for Ozil, who is out of contract at the end of the season.
They are also understood to have accepted they will have to settle for a similar fee for Sanchez if City revive their interest in the new year.
The fee for Fekir – who is under contract until 2020 – would almost certainly swallow up that £60m.