Real Madrid are already planning to integrate Dani Ceballos into their squad for next season, meaning Arsenal would have no opportunity to keep him at the Emirates Stadium.
Arsenal signed the Spanish midfielder on loan from Real Madrid last summer, but Los Blancos were not willing to consider putting a purchase option into the agreement.
Ceballos has impressed at the start of the season and has provided creative impetus from the middle of the park.
There has been talk of Arsenal trying to convince him to stay beyond his loan stint, but the player has been clear about his goal of making it as a first-team star at Real Madrid.
And according to Spanish giants AS, the Bernabeu giants are also moving forward with their plans to integrate him into their squad next season.
The suggestion is that the midfielder’s loan stint will not be extended and he will return to the Bernabeu next summer.
He is one of a number of Real Madrid players who are impressing on loan this season and the club plan to get them into their squad next year.
Real Madrid believe integrating some of their on-loan stars will help them to renew the squad without having to spend big money.
