Mikel Arteta has suggested that Arsenal are working on agreeing a new deal for Real Madrid midfielder Dani Ceballos.

The Spaniard has recently returned to his parent club after starring for the Gunners during the back end of his season-long loan spell.

However, with the player's future at the Bernabeu currently uncertain, Arteta has acknowledged that the 24-year-old is open to returning to North London.

Speaking to reporters on Thursday, Arteta said: "Well, we have some talks and Dani knows really well what I think about him.

"He was pretty clear with me as well that his intention was to remain with us, but obviously Real Madrid is involved and I don't know yet what they want to do with the player.

"But he's a player that we are interested in because we really saw, in the last few months of the season, what he is capable of bringing to us."

Ceballos made a total of 37 appearances for Arsenal in all competitions during the most recent campaign.