Real Madrid confirmed the departure in an official statement, paying tribute to Ceballos' commitment across his time at the club.
"Real Madrid would like to thank Dani Ceballos for his commitment and his work throughout the time he has defended our shirt, and wish him and his entire family the very best in this new stage of their lives. Real Madrid is and will always be his home."
The club's statement outlined the full scope of his achievements at the Bernabéu: three European Cups, four Club World Cups, three European Super Cups, two La Liga titles, one Copa del Rey and three Spanish Super Cups across seven seasons with the first team.
Ceballos addressed the departure himself on social media, acknowledging that the decision was not straightforward.
"After nine years, the moment has come to close one of the most important stages of my life," he wrote.
"It hasn't been an easy decision. It hasn't been an easy year either, and perhaps precisely because of that I felt the time had come to put an end to this chapter and face a new challenge with the same excitement I had when I first arrived."
He reserved particular warmth for the club's supporters in his farewell message.
"Above all, thank you to the Madridista fans. Thank you for your unconditional support, for your demands, for celebrating the happiest moments with me and for being there in the hardest ones too. Your affection has meant much more than words can express and will stay with me always.
"I leave with the peace of mind of having given everything for this badge, of having defended these colours with pride and heart, and with memories that will remain with me for life. Real Madrid will always be a part of me and I will always be grateful."