Real Madrid midfielder Dani Ceballos has reportedly agreed to return to Arsenal on loan for the 2020-21 campaign.

The 24-year-old spent last season on loan at the Emirates Stadium, establishing himself as a key member of Mikel Arteta's starting XI after the Spaniard took over.

Ceballos returned to parent club Real Madrid at the end of the season and had been linked with a move to Real Betis, having allegedly asked Madrid to grant a reunion with his former club.

However, transfer expert Fabrizio Romano claims that Arsenal are now on the verge of reaching an agreement to bring Ceballos back to the club on loan.

Negotiations are understood to be at an advanced stage and Madrid boss Zinedine Zidane is expected to give the green light for the Spain international to leave again.

Ceballos made 37 appearances for Arsenal last season, scoring twice and creating two more goals.