Manchester City's interest in Isco will reportedly prompt Malaga to offer the midfielder a new contract, as Manchester United, Arsenal, Liverpool and Tottenham are also linked with the Spaniard.
It was reported on Tuesday that Manchester United were leading the pursuit of Isco, but Manchester City have now seemingly joined their rivals in the race to sign the 20-year-old.
According to The Sun, new Manchester City director of football Txiki Begiristain has already recommended Isco to manager Roberto Mancini, although Malaga are prepared to do all they can to keep the youngster.
Isco has a release clause of £17 million written into his current contract, but Malaga are hastily preparing a new deal with a higher buyout fee in the hope of deterring Manchester City and others.
The Spain under-23 international is being hailed as the 'new Cesc Fabregas' in his own country, and could be viewed as the ideal player to replace Paul Scholes at Manchester United.
Sir Alex Ferguson has been unable to find an adequate successor to the Old Trafford legend, although there is hope at Manchester United that Tom Cleverly will be able to fill Scholes' shoes when he retires once and for all.
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