The Spain international is considered to be one of the finest young talents in La Liga, but his role at the Bernabeu is currently far from clear.
Recent reports have suggested that the 23-year-old’s relationship with manager Carlo Ancelotti has become strained, with the Italian unhappy with his midfielder’s attitude, while the player himself is frustrated with big game snubs.
And this appears to have lured in Arsenal, with a £45m offer on the cards.
Although Arsene Wenger has a host of top class players to play in the zone behind a main striker, Isco is still wanted at the Emirates Stadium, and could complete a deadly triumvirate alongside Alexis Sanchez and Mesut Ozil behind Olivier Giroud.
The Spaniard has also been linked with Liverpool.