Dani Ceballos will remain on loan at Arsenal from Real Madrid for the remainder of the season, as confirmed by Diario AS.
It had been widely reported that the central midfielder would leave the Emirates this month – halfway through his season-long loan arrangement – in order to return to Spain.
He is said to have wanted more first-team football ahead of this summer’s European Championships, with a fear that he has fallen out of contention for the Spain squad.
Valencia were strongly linked with a move this month, although it was claimed by Marca that Madrid vetoed this move as they did not want to strengthen a direct rival.
The 23-year-old has started just nine matches across all competitions for the North London club this season but the exit of Unai Emery as boss may have changed his first-team opportunities.
Real Betis – the former club of Ceballos – are also said to have made a tentative enquiry of the player.