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The club said tests showed a “complete tear” of ligaments. He injured his left ankle during Spain‘s first match at the Olympic Games but stayed with the squad, which won the silver medal after losing the final to Brazil.
Madrid said Ceballos’ recovery “will continue to be assessed,” but similar injuries usually sideline players for several weeks.
Madrid makes its Spanish league debut on Saturday at Alaves.
Ceballos was out of action for several matches last season because of injuries.