Dani Ceballos is expected to return to Real Madrid at the end of his current loan spell at Arsenal.
The Spain midfielder has spent the last two seasons at the Emirates Stadium and is in line to make his 50th Premier League appearance in next week's game at Crystal Palace.
Ceballos, 24, had found first-team opportunities limited at Real Madrid before joining the Gunners in 2019 on a season-long loan – a move that was then replicated for the current campaign.
He was sent off in the first leg of Arsenal's Europa League semi-final defeat to Villarreal and was an unused substitute in Wednesday's 1-0 Premier League win at Chelsea as Thomas Partey and Mohamed Elneny were preferred in midfield.
But the PA news agency understands Ceballos will not stay at Arsenal beyond the summer with neither a third loan nor a permanent transfer likely.
Gunners boss Mikel Arteta and the Arsenal technical staff will need to be smart in the transfer market with the club not expected to splash out on new players without recouping funds from sales.
That means a move for Ceballos was always unlikely, while Madrid feel they could command a bigger fee for Ceballos if they can find a buyer in LaLiga.
