The Spanish midfielder has become an integral part of the midfield under Mikel Arteta.
Ceballos spent the last season on loan at the Emirates and helped Arsenal win the FA Cup in August last season.
Mikel Arteta was impressed with his performance and wanted to re-sign him on loan for the next term.
After returning to Santiago Bernabeu, Ceballos realised that he was not a part of Zinedine Zidane’s plan and wanted to extend his stay at Arsenal.
Mikel Arteta then convinced Arsenal’s hierarchy to agree to a loan deal on Madrid’s terms with the fear of missing out on signing Ceballos.
‘People always say the first year is one of transition, but after the lockdown we saw the Dani Ceballos we all wanted, with the arrival of Mikel, we know the team improved,’ said Ceballos.
‘I found a position which isn’t usual for me, a bit more defensive. The Premier League takes you to the limit both physically and technically. I think I’ve improved a lot over the last six months.
‘After the season I spoke to Jose Angel Sanchez [Madrid’s CEO] and I told him I’d spoken to Mikel about staying at Arsenal, they told me to wait for a month for the team come back and take a decision, but my idea was clear to return to my club where I’d ended well with the boss’s confidence.
‘You look at what’s coming next summer, the Euros and Olympics, you need an important role in your team and after the lockdown, I found the role I’d been looking for in recent years with Mikel.
‘When a player is totally happy, personally and footballistically, you find the right position on and off the pitch. I decided to stay for another year.
‘I was totally happy, and I could develop my game in a totally natural way.’
See More: Top 5 Arsenal Transfer Targets List Summer 2020: Latest Transfer News