Ceballos, 20, has impressed for Betis over the last three years and starred for Spain's Under-21 side in the recent European Championship in Poland.
Barcelona was keen on the talented playmaker as well this summer, and Arsenal and Liverpool have linked with him a couple of years ago.
But Real Madrid seems to have got their man and a deal is expected to be completed imminently.
"Real Madrid is expected to announce today they've signed midfielder Dani Ceballos from Real Betis for £16million," Solhekol said on Sky Sports News.
"Barcelona were also trying to sign him. Two years ago the 20-year-old was linked with Arsenal and Liverpool."
Barcelona will now turn their attentions to former Tottenham midfielder Paulinho.
Barca has already had a bid rejected and Chinese Super League side Guangzhou Evergrande are holding out for around £35million.
"So Barcelona have missed out on Ceballos but they are very much still trying to sign Paulinho," Solhekol added.
"The former Spurs midfielder says he's been 'walking on clouds' ever since he finds out Barcelona were trying to sign him from Guangzhou Evergrande.
"The Chinese champions want €40million, Barcelona are offering about half that. Remember, the Chinese window closes on Friday."
Source: Daily Express