According to RMC Sport, Arsenal have already made contact with Lyon over a deal for the Belgium international, and the outlet reports that matters could progress quickly if the two clubs reach agreement on a fee before Tuesday's deadline.
The Athletic and L'Équipe have also reported Arsenal interest, with the north London club said to have identified the 21-year-old as a market opportunity after Lyon's Champions League exit.
Lyon's finances are the driving factor. The club were eliminated in the Champions League play-offs by Fenerbahçe after a tense two-legged tie, missing out on the revenue that group-stage football would have brought at a time when the Ligue 1 side remain under significant financial strain.
New club president Michele Kang has spent recent months trying to stabilise Lyon's finances after the previous ownership era under John Textor left the club close to relegation on financial grounds. Selling their most saleable asset would go some way toward easing those pressures, with Lyon believed to be holding out for around €40m.
Fofana has already turned down one route out of the club this window. Crystal Palace had an agreement in principle with Lyon for the winger, but the deal collapsed when Fofana himself declined to join the Eagles. Roma have also been credited with interest in recent weeks, while Tottenham had an earlier £22m bid rejected before turning their attention elsewhere.
Arsenal's business elsewhere has sharpened their need for attacking reinforcements. Gabriel Martinelli is closing in on a move to Al Hilal and Gabriel Jesus is expected to join Barcelona, while Christos Tzolis has already arrived from Club Brugge as one replacement. Notably, Martinelli and Fofana share the same representation at Roc Nation Sports.
The Belgian joined Lyon from Gent for around €17m in January 2024 and has established himself as a first-team regular since, capped five times by Belgium.
He has started the new season strongly, scoring twice in his opening appearances despite the uncertainty over his future. Lyon coach Paulo Fonseca sounded confident of keeping hold of the winger last week, telling reporters: "He is very motivated to continue with us." Those comments now sit awkwardly alongside his club's need to raise funds before the window closes.