The Gunners were tracking the young midfielder but Rudi Garcia’s side have won the race to the Brazilian’s signature.
Lyon have confirmed the signing of Bruno Guimaraes from Athletico Paranaense, ending Arsenal’s hopes of landing the Brazil Under-23 international midfielder.
The Ligue 1 side have paid €20 million (£17m/$22m) to land the 22-year-old, who has signed a four-and-a-half year contract through to the summer of 2024.
The deal also includes a clause that will see Lyon pay Athletico Paranaense 20 per cent of the profit on any future transfer.
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