Manchester City transfer target Isco is ready to sign a new Malaga contract, according to the club's director of football Mario Husillos.
The Sky Sports report carries quotes from the Malaga director, revealing the 20-year-old playmaker is close to agreeing the terms on a new deal.
That would come as a disappointment to Manchester City, as the contract would likely bump the player's buyout clause up to €35m, according to the report.
Isco is currently thought to have a realise clause of €21m. Reports in Spain claim he will commit his future to the club until June 2018, and the deal would quell speculation linking him with a move away from the Andalusian club for the time being.
Manchester City and reigning Serie 'A' champions Juventus have been linked with the young midfielder, but Husillos insists Isco is ready to extend his contract.
"Isco's contract renewal is in its advanced stages and should be signed shortly," said Husillos. "We will be here presenting Isco very soon. We will be here shortly to announce the renewal of his contract.
"It's not renewed as yet, but I think it will be very shortly. We understand it is virtually a done deal."
But the Malaga director did issue a word of caution, which could give Manchester City and Juventus hope.
He continued: "There are no sure things in football. Everything can change in an instant.
"The club's intention and what Isco has stated is that he is going to stay here; he's going to renew his contract. Life can also throw up a lot of surprises. That is the most conclusive statement that the club can make on the issue."