Arsenal are prepared to cover Dani Ceballos' wages to take the Real Madrid midfielder on-loan.

Marca says Arsenal have agreed a season-long loan agreement, which will not include a purchase option, with Madrid and they are just waiting to finalise the move.

Ceballos still has ambitions to succeed at the Spanish giants and was keen not to push for a permanent switch ahead of the new season.

It is believed that he sees Arsenal as the perfect fit for his short-term future, liking the idea of living and London and also feels that he could benefit from playing under Unai Emery.

The Gunners will pay 100 per cent of his wages, understood to be £2.7million a year - an amount that fits perfectly with their current financial position.

Everything is in place for the move to be finalised and the Emirates outfit hope to confirm the arrival this week once Madrid give the thumbs up.