The midfielder spent last season on loan with the Gunners and ended the campaign strongly as he formed a solid midfield partnership with Granit Xhaka.
However, sources in Spain earlier this month claimed that Real Madrid are now planning to keep Ceballos for their pre-season campaign in order to give him a chance to convince Zinedine Zidane that he is worthy of a regular first-team role.
Arsenal had hoped to secure Ceballos for a second season-long loan but according to Mundo Deportivo, the Spaniard has now told Madrid’s hierarchy that his preference is to return to Real Betis.
The report claims that Ceballos is aware that his chances of winning over Zidane are slim and he has instructed Madrid’s hierarchy that he would prefer to play for Real Betis in order to receive regular football.
Earlier this month, Ceballos was pictured wearing a Real Betis shirt whilst on holiday with friends.
The midfielder joined Betis at the age of 15 in 2011 and went on to make 105 appearances for the club before he was bought by Real Madrid in 2017.
Ceballos has also revealed that Betis’ hierarchy kept in contact with him throughout his loan spell at Arsenal last season.
‘He was pretty clear with me as well that his intention was to remain with us but obviously Real Madrid is involved and I don’t know yet what they want to do with the player.
‘But he’s a player that we are interested in because we really saw, in the last few months of the season, what he is capable of bringing to us.’