Isco looks set to shun interest from Manchester City by completing a move to Real Madrid.
According to Spanish paper Marca, the 21-year-old Malaga star favours a move to the La Liga giants, despite reports believing Manuel Pellegrini's side were favourites to land the sought-after sensation.
Isco was in scintillating form during the recently concluded Under-21 European Championships, with such form doing little to dampen talk of an impending transfer.
It was believed that City had the leverage of any potential transfer after Pellegrini took over at the Etihad Stadium, with Isco no stranger to the Chilean tactician, having played under him at Malaga. It was widely thought that he was eager to be reunited with the youngster and a move seemed certain.
However, after yesterday's publication in which Marca said that Real Madrid were meeting with Malaga representatives to conclude a deal, it appears that talks were successful and Isco is edging closer to moving to Madrid.
Marca claim: "The first major signing that (Carlo) Ancelotti will make at Real Madrid will be Isco.
"Manchester City is another club hot on the tail of the midfielder and is waiting for an answer from both club and player.
"The fact that Manuel Pellegrini managed Isco at Málaga could swing the deal in City's favour. However, Isco appears to be more interested in signing for Real Madrid."
Should Manchester City miss out on Isco, they will see this as a bitter blow having made the young star one of their top transfer targets this summer.
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