Arsenal have been boosted after agreeing a £34.6million buying option with Real Madrid in their efforts to sign Isco, Tribal Football reports.
The 23-year-old was heavily linked with a switch to the Emirates during the January window, with speculation that manager Arsene Wenger was prepared to pay £25million for his services.
However, following the closing of the transfer market on February 1st, the Gunners could now make a move for his services if no offer higher than the mentioned amount is made before June.
Manchester City have also declared their interest in the Spain international in recent months following previous revelations that he was unhappy with his role at the Bernabeu.
Despite his plea for regular playing time, newly appointed manager Zinedine Zidane was keen to keep hold of the midfielder given that he has been unable to find an adequate replacement.
Isco has already made 24 appearances in all competitions for his side this term, so far managing to score three goals while providing another nine assists.