Real Madrid midfielder rejects contract extension offer amid interest from arch-rivals - Reports

Real Madrid midfielder Dani Ceballos has reportedly rejected a contract extension offer from the club, with Atletico Madrid keeping tabs on his situation.

According to Fichajes, all signs point towards Ceballos, 26, leaving the Santiago Bernabeu in the summer. The Spanish midfielder's contract expires at the end of the season, and he considers the club's latest offer to be insufficient.

Ceballos could be heading for the exit door, and Atleti, Real Betis and an unnamed Serie A club are showing interest. He has impressed when called upon this season, scoring one goal and providing eight assists in 41 games across competitions.

The Spaniard knows that Real Madrid are expected to sign Borussia Dortmund midfielder Jude Bellingham. They're also showing interest in Celta Vigo's Gabriel Veiga, which would only further jeopardise his game time.

Ceballos joined Los Blancos from Betis in 2017 for €16.5 million. The midfielder has failed to nail down a consistent starting place in the side, though. He spent two seasons on loan at Premier League club Arsenal, from 2019 to 2021.

The Spaniard has won two UEFA Champions League trophies, the La Liga title and the Copa del Rey during his time at the Bernabeu. He has made 115 appearances across competitions.

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Carlo Ancelotti expected to remain Real Madrid manager next season

Carlo Ancelotti isn't heading anywhere.

L'Equipe reports that Ancelotti is expected to see out the remaining year of his contract at Real Madrid. The Italian's future has been the subject of much speculation amid interest from the Brazil national team.

Ancelotti came under pressure midway through the season, as his side fell behind Barcelona in the La Liga title race. However, he has overseen a superb run of form that has coincided with Los Blancos winning the Copa del Rey. The Italian has also taken Madrid to the UEFA Champions League semifinals for the second straight season.

His contract with Los Merengues expires in 2024, and it seems that he will continue to be in charge next season. The higher-ups at the Bernabeu are aware that not too many top replacements are available at the moment.

It's reported that only a heavy defeat to Manchester City in the second leg of their Champions League semifinal could change things. The two sides are tied 1-1 on aggregate after the first leg at the Santiago Bernabeu last week.

Real Madrid could look to secure another contract for their illustrious manager, should they win the competition again. Ancelotti returned to the club from Everton in 2021 and won a La Liga and Champions League double in his first season back in charge.