The move brings to an end a saga that has followed the midfielder for much of the past decade, finalised almost two months after Real Madrid announced they had agreed to terminate the final year of his contract. Ceballos, from nearby Utrera, has committed to Betis until 30 June 2029 on a deal that places him in the club's third salary tier, with additional clauses depending on whether the team qualifies for the Champions League or Europa League, plus performance-related bonuses.
Ceballos played 105 matches for Betis, scoring seven goals and providing nine assists, before his 2017 move to the Santiago Bernabéu for a fee of around €16.5m. In his time at Real Madrid he made 215 official appearances across two spells, scoring seven goals and setting up 16 more, while winning three Champions League titles, two La Liga titles, a Copa del Rey, two European Super Cups, an Intercontinental Cup, three Club World Cups and three Spanish Super Cups.
He also spent the 2019-20 and 2020-21 seasons on loan at Arsenal, where he won the Community Shield and made 77 appearances in the Premier League, contributing two goals and several assists.
Ceballos has earned 13 senior caps for Spain, scoring once, and turned 30 last month as he prepares for what he has described as a special season back at his boyhood club.
His return coincides with Betis preparing to compete in the Champions League for the first time in more than two decades, giving the midfielder the chance to represent the club he supported as a child on the continent's biggest stage.
Manuel Pellegrini now has a player with genuine top-level pedigree to call upon as he shapes his midfield for a demanding campaign on multiple fronts.
Talk of a Betis return has surfaced repeatedly in recent transfer windows without ever coming to fruition, with the club previously unwilling to meet Real Madrid's asking price and Ceballos himself weighing other options, including a temporary switch to Marseille last summer that ultimately fell through.
This time, freed from any transfer fee after leaving the Bernabéu on a contract termination, the deal finally came together once Betis cleared enough salary space to accommodate him following a series of squad departures over the summer.
The midfielder is due to complete his medical at the club's training facilities before being unveiled to supporters at the Estadio Benito Villamarín, formally closing a chapter that Betis fans have anticipated for the best part of a decade.