Mikel Arteta is facing a battle to secure a deal for Spanish midfielder Dani Ceballos - with AC Milan, Valencia and Real Betis also interested.

Arsenal are in talks with Real Madrid about a deal for Ceballos, who has been on loan at the Emirates this season and has impressed Arteta in 20 league appearances.

The Gunners manager said this week that he likes Ceballos, 23, and wants him to stay - though with money tight there is more likelihood of another loan deal for next season.