Three clubs are reportedly prepared to rival Arsenal in the race to sign Real Madrid midfielder Dani Ceballos.

While the Spaniard had only played a bit-part role for the Gunners before the coronavirus pandemic, the 23-year-old has emerged as one of Mikel Arteta's key men over the past three weeks.

With Ceballos out of favour at the Bernabeu, discussions are expected to take place between the relevant parties, with a compromise likely to be required to get a deal over the line.

However, according to The Express, AC Milan, Valencia and Real Betis are all eyeing up a season-long loan for the playmaker.

As a result of Los Blancos being keen to raise transfer funds over the next 12 months, much could depend on whether any proposal includes a mandatory option to buy.

Ceballos still has three years remaining on his contract with the La Liga leaders.