Arsenal will reportedly have to shell out £36 million to sign Dani Ceballos permanently this summer.
The 23-year-old star has made 14 Premier League appearances for the north Londoners since he joined on a season-long loan in July.
According to the Mirror, Real Madrid will let him leave in the summer if their asking price is met.
Dani made an impressive start to life at the Gunners under the management of Unai Emery.
He put in a man-of-the-match performance in his first home game against Burnley in August.