Isco has been one of the stars of the under 21 European Championships in Israel.
Manchester City look set to beat Real Madrid to the signing of Spanish play-maker Isco according to the Daily Mirror.
New manager Manuel Pellegrini will try to lure Isco to the Etihad and is determined not to miss out on a player with whom he shares a strong bond.
Isco played under Pellegrini at Malaga and called the Chilean his footballing father in a recent interview.
The highly-rated player-maker revealed that both Manchester City and Real Madrid had put in bids for him and that he was in the process of deciding where he will play next season.
Reports suggest that he is leaning more towards Manchester City, because of his connection with Pellegrini and because he feels that he will play more regularly at the Sky Blues.
Real Madrid currently have three play-makers in their squad and the feeling is that Isco will struggle to start games for the Spanish giants while Pellegrini will try and fit Isco into his starting line-up.
Isco has said that he will go where he feels he will play the most, so that seems to put Manchester City in pole position.
City will step up their bid to sign Isco after the European Championship final on Tuesday and believe that they can sign the midfielder for £17 million.