The midfielder, 23, joined Arsenal on loan at the start of the season in a bid for more playing time, but saw his number of appearances severely hampered by injury.
However, prior to the coronavirus outbreak, Ceballos had begun to establish himself under new head coach Mikel Arteta.
There is no purchase agreement in Arsenal’s contract with Real Madrid, and the club’s limited financial capabilities this summer means it’s unlikely the Spaniard’s stay will be made permanent.
Ceballos, who joined Madrid from Real Betis in 2017, is keen to earn his place in Spain’s squad for the upcoming European Championships and Olympic Games.
“My objective is to play in the European Championship and Olympic Games, and when they are happening you need to find a team where you feel important,” Ceballos told Canal Sur Radio.
“The future is far away, we can’t predict what will happen in a month and a half. Now we are focused on the postponed game against Manchester City on the 17th.”