Inside Spanish Football have reported Manchester City boss Manuel Pellegrini is keen to link up with his former Malaga prodigy, Isco. Last season Manuel Pellegrini sought hard to bring Isco with him to Manchester, however the Spanish forward chose Real Madrid instead.
Despite having a positive first season at Madrid, Isco has been made available for transfer/loan following the James Rodriguez's mega-move to Real Madrid.
Liverpool were said to be favourites previously, though given Man City's riches and stability might complicate matters for the Reds. A crucial element to consider is Final Fair Play. According to the Daily Mail, Man City are under pressure to meet FFP targets or risk being kicked out of European football. Given the price Isco would command, Man City may have to miss out on Isco yet again.