Aouar was heavily linked with a move away from Ligue 1 before the summer transfer window was closed, with the likes of Manchester City, Real Madrid and Arsenal all said to have been involved in an attempt to secure the services of the France international.
The 22-year-old was very close to joining the Gunners but a move to the Premier League could not materialize.
The Lyon academy product was recently punished by the club for refusing to train and it has led to rumours that he was unhappy.
In an interview with French‑Monegasque radio station RMC Sport, Aouar quashed all claims and insists he is happy playing for Les Gones.
“I do not see how I could be unhappy in my city, in my club. That is something that I do not understand (rumours that he is unhappy at Lyon),” the Frenchman said.
“I am very happy to be here, I took the decision to stay with the club that formed me, I savour every day I have here.
“Everything that I want, is to put this club back in its rightful place with my team-mates. I am very happy to be here, we have an enormous amount of ambitions for this season.”
On his failed move to the Premier League, Aouar added: “That is part of a footballer’s life, I am very well surrounded, the club and the coach have spoken with me a lot, it was quite a normal period.”
Auoar has been involved in eight Ligue 1 games so far this season, scoring two goals and providing 1 assist in the process.