BBC Sport reporter David Ornstein has confirmed that Arsenal have reached an agreement with Real Madrid to secure the services of Dani Ceballos.
The midfielder has recently come through a successful Euro Under-21 campaign where Spain were crowned as the champions, and he now appears set to test himself in the Premier League.
Both Arsenal and Tottenham Hotspur have been linked with the versatile midfielder in the past few days, but the former are said to have had the edge with Unai Emery assuring him of a regular starting role.
No official announcement has been made by either Arsenal or Real Madrid, but Ornstein, who is generally reliable with anything related to the Gunners had confirmed the move.
Arsenal were initially keen on adding the option to buy on Ceballos but neither the midfielder nor Real Madrid were keen on the prospect of the permanent deal.
As such, the north London giants will have to contend with a temporary deal for Ceballos for the forthcoming campaign and he should prove an exciting prospect with his versatility.
The Spaniard is generally a central midfielder by trade, but he made good scoring contributions at the Under-21 Euros where he was fielded in the number 10 role.