The 24-year-old's return in another season-long loan was announced on Friday, bringing an end to speculation he may stay in La Liga, either with Real Madrid or former club Real Betis.
Ceballos started just seven league games during an injury-plagued first half of last season but formed an eye-catching midfield partnership with Granit Xhaka following the restart, playing a crucial role as Arsenal sealed a Europa League spot in lifting the FA Cup.
The Spaniard expressed his delight in sealing a return, insisting he had informed Arteta of his desire to stay and win trophies with Arsenal prior to their FA Cup victory.
“I’m very pleased to be back with Arsenal - I’m very happy to have come back to a club where I feel important,” Ceballos told Arsenal's official website.
— Arsenal (@Arsenal)September 4, 2020
“It’s true that I had other options, such as staying at Real Madrid and going back to the Spanish league, where there were teams interested in me.
“I spoke to the coach last year, before the [Emirates FA Cup] final, and told him that I wanted to stay at Arsenal and win titles. I’d been really happy with what Mikel had built at the club since he came in. I had a great time at this club last season and there was never any doubt in my mind that I wanted to come back."
Ceballos had made his return to Spain when Arsenal claimed more silverware in a Community Shield victory over Premier League champions Liverpool.
The Spaniard believes Arsenal's recent success can be largely accredited to the energy Arteta has created, insisting he is the right coach to guide Arsenal back to the Champions League.
“I think everybody can see what Arteta is doing at the club. He’s only been here for eight months. There were three competitions we could fight for. We got knocked out of the Europa League, unfairly in my view, but then we won the FA Cup and the Community Shield, which were well-deserved titles.
“More than that, though, it’s about what he’s created here – there’s real positive energy in the dressing room, the players are happy and everyone is doing their bit. We’re bringing through young players, which I think is really important for this club, because it’s something that’s always been done here.
“Mikel is the right person to get this club back to where it deserves to be, which I believe is in the Champions League, competing against the best teams in Europe.”