Ceballos has struggled to force his way into the Madrid first team on a regular basis since joining from Real Betis two years ago with the midfielder managing to make just 13 La Liga starts last season.
The 22-year-old has confirmed he needs to play regular first team football this coming campaign and there has been no shortage of interest being shown with Arsenal and Tottenham both vying to bring the player to the Premier League.
However, the BBC claim Arsenal have now won the race to sign Ceballos ahead of their north London rivals after reaching an agreement with Madrid over a one-year loan deal.
Arsenal had hoped to negotiate an option-to-buy clause into the deal but AS insist no such arrangement has been secured as Madrid still feel Ceballos has a future at the club once he’s developed his game further while away on loan.
The Spanish publication says Ceballos will travel to London today to undergo his medical and complete his move to Arsenal with the deal believed to be just a matter of hours away from being finalized.