Ancelotti has previously confirmed that Arda will still be part of their squad this season, so at that time several clubs who were interested in borrowing him slowly withdrew, especially since Arda has confirmed that he wants to compete with other players in Madrid for the main place although the chances are very small, now that the season has run and I think there is no more chance to borrow Arda from Madrid so they must to wait for the transfer market open again, Arda does have great potential and Madrid definitely see him as a long-term investment so they continue to try to keep him in the current squad, beside that, the storm of injuries that are hitting Madrid at the moment there is a great opportunity for him to show his quality and ability to Ancelotti.
I think at the moment he just needs a chance and the trust of the coach, so if he can get it of course he can show his prowess in playing, Ancelotti will probably give him more opportunities as time goes on, but I think to get that opportunity of course he has to keep working hard to get it because currently Madrid is filled with a lot of talented players.
If Anceloti needs Arda among his team, he would have done so immediately but I remember immediately Endrick joined them in July, they stopped immediately and I remembered he says they are done for the season preparation. So if they need him, they will rather go for him than loan him when they already gave Joselu as loan to Espanyol, the transfer wasn't necessary. It could be speculation and not real deal and perhaps they want to increase his bid to get the best out of the rest of the buyers.
Though, if Anceloti knew his players are going to be injured like this, he wouldn't have let Joselu for loan and he would have added Arda to the squad for such an important time like this, even Ibrahim they used sometimes for important times like this is in injury, so much load on his head right now.