According to The Athletic's David Ornstein, Martin Odegaard is expected to stay at Santiago Bernabeu next season.
The 22-year-old is understood to be a priority target for the Gunners this summer but their chances of getting him back are considered slim after the managerial switch at Real Madrid.
Ornstein says signing a No 10 remains a priority for the Gunners this summer and the club are set to explore other options more aggressively now.
The journalist adds that Los Blancos did not plan to loan Odegaard out in January 2021 but the Norwegian pushed for a move due to a lack of minutes under Zinedine Zidane.
Now, as Carlo Ancelotti has arrived, the situation for Martin is likely to change drastically and the playmaker is said to be in the Italian's plans for next season. At least, there is no indication that the player will submit a transfer request at this moment.