News of the World says Lyon are keen to make an bid for the 27-year-old striker, as they battle to reclaim the Ligue 1 title from Bordeaux.
The Croatian striker has not shown his best form for the Gunners since joining the club from Dinamo Zagreb in the summer of 2007.
The Brazilian-born forward has been struggling with injuries, but signed a new long-term contract with the club last November.
