Arsenal manager Mikel Arteta has confirmed that the Gunners are “talking” with Real Madrid about signing Dani Ceballos.

The midfielder has been in impressive form since the restart and Arteta says that there will be further conversations about turning his loan move into a permanent one:

“He’s becoming a really important player. We are talking. The clubs will have communication and will see what we can do.”

Ceballos joined on a season-long loan deal last summer but there was no option to buy included in the agreement with Real. It is believed the La Liga side would want at least €40m (£36m) for the 23-year-old, but that could be negotiated down in light of the current financial climate.

The player himself also revealed at the end of last month that he wouldn’t rule out a permanent switch to the Premier League as he doesn’t feel he will get regular first-team football at the Bernabeu.

Ceballos is said to be looking to make sure he has the best chance of being named in Spain’s squad ahead of next summer’s European Championships.