Arsenal are in talks with Real Madrid over a new loan deal for Dani Ceballos.

The midfielder has impressed this season with the Gunners and expressed a hope of staying in London.

Mundo Deportivo says Arsenal are negotiating an extension for the loan arrangement to enter a second season - rather than buy Ceballos outright.

Ceballos' contract with Real runs to 2023, so protecting the Madrid giants from losing him on the cheap next year.

For his part, Ceballos is eager for regular action next season given it will be a Euros and Olympics year.