Los Rojiblancos boss Diego Simeone is rumoured to be keen on bringing in an extra attacking option ahead of the 2021/22 season but his transfer budget has been reduced.
Simeone is aiming for swap deals and loans to ensure the club is not forced into a major outlay but a move for Lacazette could offer a perfect compromise.
The French star is out of contract at the Emirates Stadium at the end of 2021/22 with no extension offer likely to be forthcoming from the Gunners.
Arsenal have been heavily linked with a swoop for Chelsea striker Tammy Abraham, and as per reports from Diario AS, they have now lowered their asking price for Lacazette to €17m.
Atletico had previously been quoted €35m for the former Lyon man and a cut price move could be perfect for Simeone.