Real Madrid are ready to sell Isco for £25million this summer, which will alert Premier League clubs such as Arsenal, Manchester City, and Manchester United, Mirror reports.
Isco was signed from Malaga in the summer of 2013, but the Spain international has struggled to become a first-team regular with the likes of James Rodriguez and Luka Modric ahead of him in the pecking order.
And after three years, Isco has become frustrated with his situation and is keen on an exit, with Real set to allow him to depart at the end of the season.
The news will be of great interest to Man City, who were previous admirers of the midfielder due to Manuel Pellegrini coaching him in the past at Malaga.
However, Pellegrini will leave the club this summer, and it will be up to Pep Guardiola whether the Sky Blues pursue a move.
The Gunners have also been linked in the past, which means there could be a bidding war for the 23-year-old amid Euro 2016.
— Europcar Sport (@EuropcarSport) February 28, 2016