Arsenal are reportedly preparing to go head to head with Manchester City for the signing of Isco.
The attacker has only made five La Liga appearances for Real Madrid during the 2019-20 campaign, while he is yet to feature in the Champions League this term.
A hamstring problem has made Isco unavailable for periods of the season, although Los Blancos boss Zinedine Zidane has struggled to find a starting role for the Spaniard when he has been free from injury.
Isco will have just two years left to run on his contract at the Bernabeu next summer, and according to Mundo Deportivo, Arsenal and City are both in the race for his signature.
The report claims that the Gunners view the Spain international as a replacement for the unsettled Mesut Ozil, while City could move for the playmaker as David Silva prepares to leave the club.
Isco has made 282 appearances for Madrid since arriving from Malaga in 2013.
