Ceballos, 23, joined Madrid from Betis in 2017 after developing into one of LaLiga's most promising young players, but he found the step-up difficult.
With numerous high-profile players occupying the central and playmaking roles he would ordinarily fill, Ceballos had to be content with playing back-up, making just 17 league starts across his two seasons at the Santiago Bernabeu before joining Arsenal on loan this term.
Life has not been much more straightforward with the Gunners, who have struggled for form and started going through a potentially significant transition period.
Nevertheless, Ceballos suggests he is happier this season and he cannot envisage being considered a key player at Madrid as he targets a place in Spain's squad for next year's European Championship.
"My goal is to play next year and it will be difficult at Real Madrid to play 40 games being important," he told El Larguero.
"This year I have been happy playing and next year I want to do the same,
"It is my goal [to be in the Spain squad]. I will give it my all and it will depend on me. If I give a high level, I am sure that I will be there and we will have a great European Championship."
Ceballos retains a strong affinity for boyhood club Betis, as he showed when posting a photo of himself wearing the team's jersey prior to their 2-0 defeat to bitter rivals Sevilla earlier this month.
A return to the Benito Villamarin is not out of the question and he acknowledges LaLiga is a good fit for him stylistically, but he wants to discuss his future with Madrid coach Zinedine Zidane first.
"[Betis] is an option. I don't close the door on playing for any club. LaLiga suits me well, but I'm also happy at Arsenal and I have to have respect for them, so I am focused on the remaining days.
"I have to make the decision, I own my future. I miss playing in Spain because it is a league where I have played all my life, but, well, England has also been good for a year.
"I want to be where I am most comfortable playing. Zidane told me that the best thing was for me to play a year on loan and gain experience, so I will have a chat with him. We will have to sit down and see the best option."
Ceballos is on loan at Arsenal until the end of the season, and his Madrid contract runs out in 2023.