As per El Mundo Deportivo, the central midfielder – who spent last season on loan at Arsenal – has decided he wants to return to the Seville-based club this summer.
Ceballos came through the youth system at Betis and swiftly established himself as a first-team star before his switch to Madrid in 2017.
However, he has now decided he wants to return to his boyhood club and the main issue now is Betis clearing their salary bill in order to fund a deal.
Now coached by Manuel Pellegrini, Betis have signed defender Martin Montoya from Brighton but Zou Feddal, Antonio Barragan and Javi Garcia have all left Los Verdiblancos.
It comes after last week’s Champions League elimination against Manchester City, which saw Madrid’s weaknesses exposed on the European stage and has called for other players to be given opportunities next season.
It has appeared increasingly unlikely that he will be a part of the first-team squad at Los Blancos next season, partly due to his frosty relationship with club boss Zinedine Zidane.
Indeed, a recent report in Marca claimed that the player is unlikely to be back at Madrid next season because the Frenchman will be remaining in the dugout, while Ceballos started just four La Liga games under Zidane during the 2017/18 campaign.
Ceballos is increasingly likely to return to Betis this summer but his future is likely to go down to the final few days of the window, the report adds.