Dani Ceballos has reached an agreement with Real Madrid, according to Betis chairman Angel Haro.
Ceballos was also linked to Barcelona but Madrid appear to have beaten their rivals to get their man, with Haro confirming his club are in talks with the La Liga champions to bring the transfer to a conclusion.
"Dani has rejected our offer to extend his contract with Betis and Real Madrid has told us that he has an agreement with them," Haro told a news conference.
"Both clubs are talking, in hours or days we will have news."
"As we have said before, no player is indispensable and Betis come before everything, even the president.
"Other players will come in, perhaps more youth players who have had great seasons will come in and we will keep on going."
Madrid are reportedly eyeing a deal worth in the region of €18million for Ceballos, who is expected to sign a six-year contract.
He is set to become Madrid's second signing of the close-season, having already secured Theo Hernandez from Atletico Madrid for €24m.
Ceballos has made 65 appearances in La Liga, having made his debut for Betis in April 2014. He joined the Spanish side in 2011 after being released from Sevilla's youth system for health reasons.
After shining with Betis across the 2016-17 season the youngster heightened his reputation with a stunning turn at the UEFA European Under-21 Championships, winning the Golden Player award as the stand-out star as Spain fought to the final before going down to Germany.