Arsenal has made a final decision on the midfielder, Dani Ceballos' future at Emirates.
Cabellos' current deal at Arsenal expires at the end of June 2020.
The 23-year-old joined the North London club last summer on loan from Real Madrid.
His future at Arsenal is now up in the air following the suspension of the Premier League last month due to the coronavirus outbreak.
However, the Spanish newspaper, El Confidencial, is now reporting that the Gunners have no plans to keep Ceballos on loan for a second season, and they do not have a purchase option in their current agreement with the Los Blancos.
Ceballos recently admitted that the COVID-19 pandemic across the globe had reduced his value at Arsenal.
"I finish my contract on June 30. I would have to play for Arsenal, and I don't know how [it would work]," Ceballos said.
"The relationship of the future would be irresponsible for me to speak about.
"The most important thing will be to be important for my new club.
"I came to Arsenal to be important, and in less than a month, it has disappeared due to the COVID-19 pandemic."
The Spaniard added: "I knew about Valencia's interest in having my services. There was also talk of Sevilla and Betis."