Martin Odegaard reportedly wanted to stay with Real Madrid this summer before being told by Los Blancos boss Carlo Ancelotti that he was not guaranteed regular action in 2021-22.
The 22-year-old spent the second half of last season on loan with Arsenal before returning to the Bernabeu, and it had been expected that he would be an important player for Real Madrid this term.
According to Marca, the Norway international believed that he would be given a straight route into the starting XI upon his return to the club, but Ancelotti informed the playmaker that he was fighting with seven other players in his position, which ultimately led to his exit.
Odegaard officially joined Arsenal on a permanent basis on Friday morning, penning a deal at the Emirates Stadium until the summer of 2025.
The Norwegian leaves Real Madrid having made just 11 first-team appearances for the club since arriving in a high-profile move from Stromsgodset in 2015.
Odegaard scored twice and provided two assists in his 20 outings for Arsenal last season, and he could potentially be involved in Sunday's Premier League clash with Chelsea.