Dani Ceballos will remain on a loan at Arsenal for a second season after the Gunners agreed a deal with his club Real Madrid.

The Spanish midfielder made 37 appearances for Arsenal last season, helping the North Londoners to win the FA Cup.

"Dani was an integral part of our team last season and finished the season in excellent form," Arsenal boss Mikel Arteta said of keeping the midfielder for a second season.

"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."

The Gunners technical director Edu says it's a boost to keep former Real Betis player Ceballos at the Emirates.

"We're thrilled to have Dani back with us for the new season. "We all know his qualities after an impressive 2019/2020 campaign, which ended with him playing a key role in our FA Cup success.

"We're excited to add Dani to the list of quality players we are bringing in."

Arsenal have already signed defenders William Saliba and Gabriel and winger Willian ahead of the new campaign. While they've also made Cedric Soares and Pablo Mari's moves permanent.