The Gunners are reportedly willing to let Sanchez to leave The Emirates for the right price - but the north London side are still hopeful of getting the 28-year-old to sign a new deal with Arsenal and commit his future to the club.
Lacazette had previously been expected to join Atletico Madrid and Aulas said that move could be back on the cards once the Spanish side's transfer ban concludes in January.
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Lyon president Jean-Michel Aulas admitted that he believes Lacazette will continue with his current employers beyond this summer. Lacazette has already expressed his desire to play in the Champions League, something a move to Arsenal can not help him fulfil that ambition.
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Traore has signed a five-year contract at Lyon, who will pay €10million for the versatile forward, with coach Bruno Genesio stating Burkina Faso worldwide will bring something extra to the squad.
The 30-year-old forward made only 11 Premier League starts and amassed 18 appearances in total for Gunners this term.
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Manager Arsene Wenger is determined to strengthen his offensive department and wants to sign Lacazette as well as Kylian Mbappe to replace Olivier Giroud and Alexis Sanchez. "We're interested. Things haven't advanced".