The 22-year-old Spanish international is due to travel to London for a medical on Tuesday after Real boss Zinedine Zidane gave the green light to the move.
Emery confirmed: “We were speaking about the possibility of signing one player on loan.
“We had different names but Ceballos is a very good player. I know him from Betis at the beginning and Real Madrid.
"He played very well in the Under-21s, his national team won the competition. He is an eight and ten midfield player."