Liverpool and Tottenham look set to be dealt a blow in their pursuit of Malaga starlet Isco after it was claimed he will pen a new deal with the Spanish club.

Isco has attracted the attention of a host of Premier League clubs with his sterling performances for Malaga this season, while he also bagged a brace in his Champions League debut, a 3-0 win over Zenit St. Petersburg.

Liverpool and Tottenham have both been linked with a move for the young Spaniard while Manchester City and Manchester United have also been monitoring developments in Spain.

However his potential suitors look set to be disappointed as A Bola report he is on the verge of extending his current deal with Malaga beyond its current 2016 expiry date.

The paper reports that the 20-year-old has a €21 million release clause written into his contract – something the likes of Liverpool and Tottenham were hoping to exploit – which could be removed.

Previous reports have suggested Liverpool were interested in taking Isco to Anfield as a long-term replacement for Reds captain Steven Gerrard.

Liverpool boss Brendan Rodgers spent time in Spain over the summer and is a known admirer of smaller, technical players – leading to suggestions he could be keen on Isco.

Spurs meanwhile have previously sent scouts to run the rule over the talented youngster.

Tottenham technical co-coordinator Tim Sherwood was present to watch Isco in Malaga’s Champions League win over Anderlecht, with Spurs boss Andre Villas-Boas seemingly gearing up for a move in January.

The White Hart Lane-based outfit were given hope they could get their man when Malaga sporting director Mario Husillos admitted there was little they could do if a bid came in during the January window.

"He is our player and is important for the team. He is not on the market," he told tuttomercatoweb.com.

"We want to keep him here but you all know there is a buyout clause in his contract. So, if a club pays the clause, it does not depend on us anymore,” he added.

Topics:
Tottenham Hotspur
Football
Premier League
Liverpool