Lemar has been identified as the prime option to bolster the wide positions, but his involvement in the crunch World Cup qualifier against the Netherlands has seemingly ended the club's interest. Will there be more twists?
The Gunners twice bid for the 21-year-old star during the summer transfer window but Monaco's determination to hold onto a player so key to last season's Ligue 1 success saw Arsene Wenger effectively end the club's pursuit earlier this month.
Telegraph football correspondent James Ducker has claimed that Arsenal have finally agreed a fee with Monaco for the transfer of the French winger, and that the ball is in now in Lemar's court to decide whether the move materialises or not.
"I cannot tell you everything that happened because after you decide to let a player of that calibre go, you need to replace him because nobody would understand that you let the player go", he said.
"The player has chosen to stay in Monaco", Wenger told beIN Sports.
"I know we live in an era of transparency but at some stage to respect everybody you have to not talk too much about that".
"I am a player of Monaco, I am very happy there,"Lemar told Canal + on worldwide duty".
Les Bleus were already a goal up, after Antoine Griezmann was set up by Arsenal striker Olivier Giroud, when Lemar latched on to a clearance and thumped home a first-time belter from the edge of the box...
Now Monaco have signed Senegal forward Balde, who plays in a similar position to Lemar amid suggestions that the Frenchman has asked to leave Monaco.
Monaco had a hard transfer window as they lost the services of Kylian Mbappe, Bernardo Silva, Benjamin Mendy and Tiemoue Bakayoko.