Calcio Mercato reports that Ceballos is unhappy about the amount of game time he has received since joining the club from Real Betis.
The report suggests that Ceballos is not part of Zidane’s plans and was only signed to fit president Florentino Pérez’s long-term ambition for the club.
Perez wants to have more Spanish players at Madrid and saw Ceballos, who is highly thought of in La Liga as a great signing for the future.
It now looks likely the 21-year-old, who turned down a move to Barcelona in order to join Madrid, will leave on loan for the remainder of the season possibly to his former side Real Betis.
AC Milan and Roma are also interested in signing the player, who could leave permanently in the summer.