The highly-rated Spanish midfielder will join the club on loan for the 2019/20 season after leading Spain's U21 side to the European Championship this summer.
Ceballos has previously stated his desire to play regular football at the highest level after failing to nail down a starting berth at the Bernabeu in 2018/19.
"The most important thing in life is to be happy & that can only happen by playing 40 games a year," Ceballos said.
"My personal goal for next season is to play 40 games & to be comfortable at all times. Wherever it is doesn't matter, but it has to be a place where I can feel valued."
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At Arsenal, he is likely to become a key man under Unai Emery.
The Gunners have missed a player with his attributes for a while now, a midfielder capable of driving the team forward and retaining possession effortlessly.
According to journalist Fabrizio Romano, there is no option to buy in the deal, but Real president Florentino Perez has promised to discuss the possibility of a permanent deal with Arsenal next summer.
If Ceballos can help guide the Gunners back into the Champions League and earns the club some additional funds in the process, there is a possibility they could bring him in permanently.
Although a lot of that could hinge on whether Los Blancos need reinforcements in midfield, with Luka Modric and Toni Kroos not exactly getting any younger.News Now - Sport News