Arsenal are closing in on a deal to keep Dani Ceballos on loan at the Emirates for another season.
The 23-year-old has spent this season on loan with the Gunners, where he has scored two goals and registered two assists for the Premier League club.
Arsenal have expressed their interest in re-signing Ceballos, but Madrid have placed a hefty £30million price tag on the player if they want to sign him on a permanent basis.
Ceballos is out of favour with Real boss Zinedine Zidane and the Spanish giants would look to sell him as an opportunity to raise cash to dip into the transfer market.