Los Blancos have spent big this summer, flooding the Santiago Bernabeu dressing room with Zinedine Zidane’s top targets.
The Madrid boss isn’t convinced Ceballos is the finished article yet, and is therefore allowing him to go on loan this season – with Arsenal and Tottenham leading the race to land him.
But the Spanish outfit don’t seem too fazed as to which north London club the midfielder chooses.
AS report that Madrid are happy to let Ceballos decide his next destination, due to the fact there isn’t much separating Arsenal and Spurs these days.
Up until this point, the two north London clubs had been waiting for Zidane to give his approval to the deal.
Zidane wants the 22-year-old to earn some vital experience away from the club, before returning next season ready to battle for a place in the first team.
Ceballos was initially going to be sold by Madrid, who need to recoup some funds after spending over £300m on new players in recent months.
But the youngster’s performances at the U21 European Championship with Spain this month impressed Madrid chiefs.
Arsenal appear to be winning the race for Ceballos’ signature.
A loan deal would be ideal for the Gunners, who are strapped for cash this summer.
“We are working, the club is working with the possibility to sign some new players to help us,” Unai Emery said last week.
“We are doing a lot of meetings with the club, with (technical director) Edu, with Raul (Sanllehi, head of football) and also with Josh and Stan Kroenke on Monday in Denver.
“We have a clear idea to sign players to help us with quality and in the positions we need.
“We are taking with the patience and with the calm because we really want to sign players who can help us with a big performance and also because we think in the team we have very good players and young players and we also need to take the best player in some positions.
“Really, I can say to our supporters that we are going to have a very good team with the players that are there now and also with three or four players who can help us in a few days.”
Arsenal won 3-0 at the weekend, beating Fiorentina in the US.
Tottenham also won after Harry Kane netted a 93rd minute winner from the halfway line against Juventus.