The Spain midfielder has expressed a desire to return to Arsenal after a successful season on loan.
However, reports in England on Wednesday revealed Real walked away from negotiations as they want to keep Ceballos for next season.
And according to Spanish outlet Onda Cero, the Gunners refused to pay a loan fee this time around, having spent £3.6m on such a fee last summer.
The north London club are also only willing to pay half of Ceballos' wages, believed to be worth £50,000 a week.
There is still plenty of time for negotiations to rekindle, with Mikel Arteta keen to retain the 24-year-old after an excellent showing following the restart.