Ceballos is currently on loan at the Emirates from Madrid and has already agreed to stay in North London until the end of the 2019-20 campaign, which has been elongated due to the coronavirus lockdown.
However, his future beyond then remains uncertain, and Arteta has confirmed that Arsenal would be interested in a permanent deal for the 23-year-old midfielder.
"Both clubs have been in communication. I really like Dani and what he brings to the team," Arteta told reporters at a press conference.
"When I joined he wasn't available because he had a difficult injury, but he's understanding what we're trying to do really, really nicely and he has big personality to play and take the ball in any area of the field and give us the continuity that we need as a team to control the games better, but as well without the ball.
"The running that he's putting in, the tackles, every time with the interceptions, his desire to win that ball back and help the team, he's improved so much and he looks a really good player at the moment."
Ceballos, who has also been linked with a return to Real Betis, has made 29 appearances for the Gunners in all competitions this season. body check tags ::