The 24-year-old midfielder impressed after being loaned from Madrid to Arsenal last season and made no secret of his desire to return to north London ahead of the 2020/21 campaign.
Zinedine Zidane made Ceballos wait over his future before sanctioning a second successive temporary move to the Emirates and the Spain international is clearly delighted to be back with the Gunners once again.
‘I’m very pleased to be back with Arsenal where I had such a good time last season,’ Ceballos told the club’s official website after he extended his stay on Friday night.
‘I’m very happy to have come back to a club where I feel important.’
Ceballos had several alternative options back home in Spain but insists a return to Arsenal was always his favoured move this summer.
‘It’s true that I had other options, such as staying at Real Madrid and going back to the Spanish league, where there were teams interested in me,’ he added.
‘I spoke to the coach last year, before the FA Cup final, and told him that I wanted to stay at Arsenal and win titles. I’d been really happy with what Mikel [Arteta] had built at the club since I came in.
‘I had a great time at this club last season and there was never any doubt in my mind that I wanted to come back.’
Ceballos became a fan favourite with his performances in Arsenal colours, particularly towards the end of last season, and he admits the love he has received from supporters played a major role in his decision.
‘I think everyone will have seen last season that from the moment I joined I bought into the club completely and always gave 100 per cent both on and off the pitch,’ Ceballos continued.
‘The fans repaid me for that by showing me a lot of love… when I was at home they were sending messages asking me to come back and saying they needed me here.
‘I think they’ll be as happy as I am that I’m back and I’m sure we have a great year ahead of us this season. When the coach, the club, the players and everyone is asking you to stay for another year, you realise they see you as a good team-mate and a good player.
I feel proud that the club, the coach and, most importantly, the fans wanted me to stay, I didn’t doubt it for a second.’
‘Dani was an integral part of our team last season and finished the season in excellent form,’ the Arsenal head coach said.
‘I love Dani’s passion and commitment and he’s a highly skilful player.
‘We’re all delighted to welcome him back and we look forward to seeing him pick up where he left off.’