Real Madrid have blocked Dani Ceballos’ efforts to join Valencia on loan, according to Marca.
Ceballos is currently on the books at Arsenal, but has featured just once since Mikel Arteta took over at the Emirates.
The Spanish midfielder played his first minutes since the start of November against Bournemouth in the FA Cup.
His appearance came after he informed Gunners boss Mikel Arteta, that he wanted to cancel his loan deal this January transfer window.
However, Real do not want him joining a direct LaLiga rival.
Los Blancos remains open to Ceballos switching clubs, as the player is desperate for regular game time ahead of Euro 2020.