Dani Ceballos will head back to Real Madrid this summer with no plans to return to Arsenal and a move to a La Liga club on the cards.

Mark Mann-Bryans reports that Dani Ceballos will head back to Real Madrid this summer after two years on loan with Arsenal, and a subsequent move to a club in La Liga is currently the most likely outcome for his summer. His loan deal with Arsenal expires on 30 June, 2021.
There’s no desire from Arsenal, Real Madrid, or Dani Ceballos himself for a third year on loan. Nor are any of the three parties interested in a permanent deal.
Soon after his red card against Villarreal, reports started to emerge that Ceballos had probably played his last significant action for Arsenal. He was suspended for the second leg and left out against Chelsea, so that appears to be the case.
The midfielder has already been linked with a couple of Spanish clubs, and Real Madrid reportedly want €25m+ for him. Arsenal aren’t going to pay that, so it’s inevitable that he’s on the way out now.
Ceballos has made 77 appearances for Arsenal so far, scoring twice and assisting five goals. He may still make an appearance or two in the final week of the season before signing off.