Marco Asensio confirmed his signing for Real Madrid in an interview with Cadena SER last night.
I decided to join Real Madrid and I'm very happy. It's an honor to have big clubs looking at me and Madrid is the best of them. It's a five-year deal and now I have to enjoy! I'm looking forward for the deal to be done, just so that all parts involved can be calm, Mallorca, myself and Real Madrid.
It seems that Real Madrid could send Asensio on loan next season if Ancelotti decides that he's not ready for first team action just yet.