Real Madrid Terminates Dani Ceballos' Contract, Making Midfielder a Free Agent

Fabrizio Romano reported that Ceballos’ Real Madrid contract was originally set to run until the summer of 2027, but both sides agreed to end the relationship this summer—allowing him to leave on a free transfer.
AS said José Mourinho had already asked the Real Madrid front office to facilitate Ceballos’ departure and described the plan as “finally heading toward its conclusion,” with Ceballos prepared to walk away without compensation to exit as a free agent.
AS added that just weeks earlier Ceballos pulled out of a move that was “nearly finalized” to Ajax because he sensed the situation could shift in Betis’ favor—something Betis is now able to pursue more realistically with him available on a free.
Jorge C. Picon (cited by Yahoo Sports) reported that Real Madrid and Ceballos were negotiating a contract termination, with a view toward reaching an agreement soon so the Andalusian could “be free to choose his destination.”
Real Madrid and midfielder Dani Ceballos have agreed to terminate his contract one year early, letting him leave as a free agent this summer. Fabrizio Romano confirmed the deal, noting that Ceballos' contract was originally set to run through June 2027 — meaning he is walking away from roughly €4M–€5M in salary to secure his freedom.
The move comes days after José Mourinho was officially appointed Real Madrid manager on June 11. AS reported that Mourinho told the club's front office that Ceballos had no place in his plans for the 2026/27 season, setting the exit in motion. Real Betis, the Andalusian club where Ceballos grew up, is now the frontrunner to sign him.
Ceballos had already been on thin ice before Mourinho arrived. In the 2025/26 season, he played just 826 minutes across 23 matches, scoring zero goals and adding zero assists, according to Tribuna. That made him one of the squad's least-used players.
When Mourinho took over, the situation became final. AS described the plan as "finally heading toward its conclusion," saying Mourinho wanted a leaner, more disciplined squad. Real Madrid also signed Bernardo Silva as a free agent on June 17, further crowding the midfield and leaving no room for Ceballos.
The path to a free transfer was not straightforward. Ajax entered advanced talks with Real Madrid in early June for a €6M transfer fee. Journalist Matteo Moretto described the deal as "almost certain" at the time, according to Tribuna.
Then Ceballos pulled out. AS reported that on June 16, he walked away from the Ajax move because he sensed Real Betis could become a realistic option. By giving up his salary and leaving on a free, he made himself far easier for Betis to sign — even though it cost him millions.
Ceballos joined Real Madrid from Real Betis in 2017. He never fully nailed down a starting spot over nine years, making 215 appearances and winning 15 major trophies — including three Champions Leagues. But a permanent role always eluded him, even after a two-year loan at Arsenal from 2019 to 2021.
Yahoo Sports reported that Real Madrid and Ceballos were negotiating the termination so the midfielder could "be free to choose his destination." Betis has reportedly been waiting years for this moment. The club must first offload some high earners — like Giovani Lo Celso — before they can register Ceballos on their books, according to Tribuna.
Not every outlet agrees the deal is fully done. While Fabrizio Romano and journalist Jorge C. Picón describe the termination as imminent, Mundo Deportivo reportedly claimed — as recently as June 17 — that Real Madrid had rejected Ceballos' request to leave for free and were still demanding a fee of €7M–€8M.
The majority of credible reports, however, point to a clean split. Ceballos' market value sits at around €8M according to Transfermarkt — down from the €15M Real Madrid were asking just months ago. For the club, freeing up his wage bill and redirecting funds toward new arrivals appears to outweigh chasing a transfer fee, according to Foot Africa.
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