Arsenal face missing out on keeping hold of Dani Ceballos.

A surprise return to parent club Real Madrid is now on the cards.

The Sun says it seems Real Madrid now want the 24-year-old to return to the Spanish capital for pre-season following their Champions League exit to Manchester City.

Arsenal have been locked in talks with the Madrid hierarchy over the past few weeks with a view to renewing Ceballos' loan spell but Real have now left the negotiating table.

Given the economic effects of the coronavirus pandemic, the Spanish champions believe Ceballos represents a low-cost option to revitalise their squad.