The Spaniard has reportedly picked the Gunners over a move to rivals Tottenham Hotspur, with the youngster set to move to the Emirates on a season-long loan.
Ceballos recently starred in Spain’s Under 21 European Championship triumph, playing in every game of the competition and scoring twice.
The 22-year-old will be keen to impress during the upcoming campaign, with the midfielder hoping to cement his place in the Real Madrid starting line-up for the following season with a positive stint away from the Bernabeu.
Ceballos will be the Gunners’ second summer signing if a deal goes through, with Unai Emery’s only piece of business so far bringing in Brazilian Gabriel Martinelli.
So with Ceballos’ move reportedly close, we’ve decided to take a look at who will come out as winners and who will end up as losers as a result of the proposed transfer.
Winner: Unai Emery
The Gunners boss will be working with an excellent midfield player, who looks set to fill the void left by Aaron Ramsey for the upcoming campaign.
Loser: Mauricio Pochettino
The Spurs boss was a clear admirer of the Spaniard, however, he looks set to miss out on the youngster and will have to look to stop him in two north London fixtures.
Winner: Real Madrid
Real Madrid will be getting the player off their wage bill for the upcoming season, along with the benefit of the player gaining regular game time in the Premier League before returning to the Bernabeu.
Loser: Mesut Ozil
Ceballos’ imminent arrival could spell further trouble for Mesut Ozil. The German doesn’t appear to be in Unai Emery’s starting line up and could be pushed further down the pecking order with the arrival of the Real Madrid man.
Winner: Aubameyang and Lacazette
Ceballos will be able to link up with Pierre-Emerick Aubameyang and Alexandre Lacazette next season, which could see the duo receive plenty more chances in front of goal.
Loser: Henrikh Mkhitaryan
Another player who could fall out of favour as a result of Ceballos signing is Henrikh Mkhitaryan. The Armenian could struggle to nail down a regular starting spot.
Winner: Arsenal fans
Arsenal fans will be loving the fact they have pipped their fierce rivals to sign Ceballos.
Loser: Tottenham fans
Tottenham supporters will be frustrated they have lost out to the Gunners for the midfielder, who could prove to play a vital role in the Arsenal side next season.