Given the transfer window closes on Monday, it looks increasingly as though City won't be adding to their squad this month, but next summer could be a different story.
Isco has been linked with the Blues on and off ever since his old Malaga boss Manuel Pellegrini took over at the Etihad.
The Independent are now suggesting the talented midfielder is available for a cut-price fee of £25m in the summer, with Arsenal and City being kept updated on the situation.
They write: "Real Madrid midfielder Isco is believed to be available for £25m if Arsenal wish to sign him in the summer, although they will face competition from Manchester City should they follow up their interest with an official offer.
"Isco is believed to be unhappy with life at Real, according to his agent, and despite starting 12 of Real’s 21 matches this season, Spanish newspaper El Confidencial claims that a move to Arsenal could be on the cards.
"However, the problem for Arsenal is that Isco played under City manager Manuel Pellegrini during his time as Malaga head coach, could persuade him to move to the Etihad instead of London."
"Isco is believed to be unhappy with life at Real, according to his agent, and despite starting 12 of Real’s 21 matches this season, Spanish newspaper El Confidencial claims that a move to Arsenal could be on the cards.
"However, the problem for Arsenal is that Isco played under City manager Manuel Pellegrini during his time as Malaga head coach, could persuade him to move to the Etihad instead of London."
Elsewhere, Read Bundesliga believe Robert Lewandowski won't be heading to play in England anytime soon.
The Bayern Munich striker, they claim, will instead wait for his 'dream move' to Real Madrid. The report reads: "Lewandowski will hold out for a move to Real Madrid and reject interest from Chelsea, Manchester United and Manchester City in order to get his dream move to Spain.
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