Liverpool and Arsenal are monitoring Isco's situation at Real Madrid.
The Daily Express says Isco, who rejected the chance to link up with Manuel Pellegrini at Manchester City in order to move to Santiago Bernabeu, made a bright start to his Madrid career, but a loss of form and a switch in formation saw him drop out of Carlo Ancelotti's first-team plans.
Liverpool boss Brendan Rodgers and Arsenal's Arsene Wenger are both big fans of the versatile playmaker.
City boss Pellegrini forged a close bond with Isco during their time together at Malaga and could also be tempted to make an approach, but the Chilean knows he will first have to move on one of his own players in order to make room for the youngster.