According to a report from Defensa Central, Real Madrid were concerned that Odegaard would refuse a renewal of his current contract as long as Zinedine Zidane is manager, but since the French manager is gone now, they are working on a new deal.
While Odegaard was loaned out to Arsenal, there were constant claims that despite Zidane not rating the 22-year-old highly, Real Madrid still wanted to hold on to him.
The 22-year-old had a mediocre loan spell with Arsenal, impressing on occasions but was still relatively underwhelming considering the high expectations placed on him.
He played 20 times in all competitions for Arsenal, scoring two goals and providing two assists.
The report adds that Odegaard's uncertain future was one of the key factors that led to Zidane and Real Madrid to part ways.
The Norwegian recently stated that he is uncomfortable changing clubs all the time, and so it is highly unlikely that he will play for a new club next season, with him most probably playing for Real Madrid next season.
Arsenal have been forced to consider other options instead of Odegaard, as they look to sell several midfielders this summer in order to raise funds and strengthen their squad after last season's disappointment.