Arsenal will not look to sign Dani Ceballos on a permanent deal from Real Madrid when his loan expires this summer.
Ceballos has not done enough to impress Mikel Arteta since he arrived at The Emirates, despite soccer in extra-time for the Gunners in their FA Cup quarter-final victory at Sheffield United.
The former Real Betis scored one goal and made two assists in 25 appearances for Arsenal this season but leave at the end of their current campaign.
Ceballos joined the Gunners on loan from the Spanish giants for £3.5million last summer and impressed under former manager Unai Emery during his first few matches in the Premier League.
Emery saw Ceballos as a potential box-to-box replacement for Aaron Ramsey and showed promise during his full debut against Burnley in August, according to The Sun.
Though, a hamstring injury sustained in their game against Vitoria Guimaraes in the Europa League curtailed his progress.
Ceballos was side-lined for three months, which ultimately lead to him falling out of favour under new manager Arteta.
Ceballos has signed a contract extension until the end of the season, but will depart once their campaign is over.
Given the financial ramifications of the coronavirus pandemic, Arsenal are reluctant to part ways with the £30million fee which Real Madrid are expected to demand.
Arteta has instead said he would like to hand youngsters such as Bukayo Saka, Joe Willock and Ainsley Maitland-Niles an opportunity to shine in the first-team.
The 23-year-old's future is up in the air as he is reluctant to return to play for Real Madrid next season.
Should Zinedine Zidane remain in charge of the club next season, Ceballos will have to look elsewhere with the Spaniard out of favour under the Frenchman.
Ceballos spent two seasons at Real Madrid under Zidane. During that period, he made 56 appearances, scored five goals and provided two assists.
Ceballos, who cost Real Madrid £15million when they signed him from Real Betis in 2017, admitted: 'Next year I want to play, and I will hardly be able to do that at Real Madrid.
'I am not closing the door on any club, and I do not rule out continuing with a team in the Premier League.'