The Brazilian has been touted as a Gunners target with the Ligue 1 side said to have slashed their asking price for Paqueta, to a fee in the region of £33.5million.
Talking after Lyon’s 2-0 pre-season win over Feyenoord, Cheyrou gave an insight into the club’s approach to the final month of the market.
“We need to reduce the squad size,” he told reporters.
“In terms of departures, we will analyse offers on a case-by-case basis but the economics will come into consideration. We will consider the offers with Jean-Michel Aulas and Vincent Ponsot in order to make the best decisions.
“I am here to ensure the best team possible, but there are other things to take into account as well.”
Asked specifically about Paqueta’s future, he admitted: “We are prepared for every eventuality.”
Arsenal technical director Edu has spoken of his admiration of attacking midfielder Paqueta - but insisted he has not held talks over a transfer.
“I’m very respectful when I talk about Lucas,” he told TNT Sports Brazil.
“I’m a guy who likes him a lot, I’ve always liked him, since my time with Brazil’s national team. He’s had a great season, he was considered the best [overseas] player in the French league.
“But today, there really isn’t any kind of talk, there’s only my admiration for the player, because the squad today is, in the position he plays, I think we’re very well served in this regard.”