Football Express News understands that Manchester City are leading the race to sign Isco after James Rodriguez signed for Real Madrid.
The talented Spaniard joined Real Madrid last summer from Malaga in a £28m move and made 53 appearances for Los Blancos last season, scoring 11 and assisting eight times.
But, his time at the club is about to change with the addition of James Rodriguez from Monaco on Tuesday, leaving the youngster doubting his playing time next season.
Isco, along with Angel Di Maria and Sami Khedira are now expected to leave the club and it is understood that all have interest from a number of Premier League clubs.
The former Malaga man has attracted interest from the likes of Man City, Arsenal, Liverpool, Man United and Chelsea in recent times and it is thought that the former are now in pole position to complete a summer move.
Isco worked with City boss Manuel Pellegrini during their time at Malaga and it is understood that he would prefer to link up with the Chilean once more, rather than move elsewhere.