Arsenal are keen to circumvent their budget problems by bringing Dani Ceballos to the Emirates Stadium on loan, amid interest from rivals Tottenham.
The 22-year-old penned a six-year deal with Los Blancos after switching from Real Betis for €18m in 2017, but he has struggled to hold down a starting berth at the Bernabeu. He has made a total of just 35 La Liga appearances in his two seasons in the capital, scoring five goals and collecting six caps for Spain in that time.
Sky Sports report that Arsenal could benefit from Ceballos' desire to leave Real on a temporary basis, the player feeling that a brief spell away would help his long-term prospects in Madrid.
The starlet is understood to favour a loan move to secure more regular game time, which would in turn allow him to challenge for a place in Zinedine Zidane's first-choice XI on his return.
Tottenham are known to be monitoring Ceballos' situation with his current employers and could make a formal approach should they continue to be frustrated in their attempts to sign Giovani Lo Celso.
However, Spurs are believed to be pushing for a permanent deal, meaning Arsenal have the upper hand in this saga.
We have already discussed why it would make sense from Ceballos' point of view to be shipped out on loan, but he would not be the only one to gain an advantage from such an outcome.
Los Blancos are eager to have a buy-back clause included in any deal to take the Spaniard away permanently as they are aware of his potential and don't want to be left ruing the choice to let him leave. Therefore, they would surely be more open to the Gunners' proposal.
Meanwhile, Emery is heavily restricted by the £45m budget he has been handed for transfers, so a high-profile loan signing will be music to his ears as he looks to maximise the measly sum of money Stan Kroenke has afforded him.