But Real Madrid manager Zinedine Zidane first needs to give the green light to the switch.
It is expected the Frenchman will approve Ceballos’ departure for the 2019/20 season.
The midfielder, 22, is not believed to be a part of Zidane’s plans for the coming campaign.
However, Ceballos and Real still see a potential future for him at the Bernabeu.
And they are not looking for a permanent sale of the talented Spaniard.
Mauricio Pochettino’s Tottenham wanted Ceballos on a full-time basis this summer.
However, Starsport understands north London rivals Arsenal have leapfrogged them in the race to sign Ceballos.
Their deal suits all parties, with a move for the Real ace not taking a chunk out of Unai Emery’s budget.
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“Ceballos’ salary in Spain will not be a hinderance to Arsenal”
Ceballos’ switch to the Emirates Stadium will be straightforward once Zidane gives the all clear, according to Goal.
That means personal terms and the player’s say so will not hold things up, with Arsenal not having to worry about meeting potential wage demands.
Ceballos’ salary in Spain will not be a hinderance to Arsenal, with the youngster still on low wages compared to his superstar team-mates.
Zidane is the man Ceballos now needs to give the thumbs up to him joining Arsenal.
And as it is felt he will get the necessary game time he desires at the top level in London, Zidane shouldn’t have a problem with the deal.
Goal add Real have not yet fully agreed to the move but a deal is now very close.
Ceballos is not the only player Arsenal are on the verge of landing.
A deal for Saint-Etienne’s William Saliva is set to be sealed with a view to him arriving in the summer of 2020.
That will be another player Arsenal have beaten Tottenham to, despite Spurs reaching the Champions League final last term.