AC Milan have approached Real Madrid over a price for Isco.
Aware of Isco's drawn out contract negotiations, Milan have sounded out Real about the midfielder's availability. The Rossonero have also asked for James Rodriguez.
Isco is demanding a massive pay-hike and playing assurances before committing to a new Real deal.
Milan have also spoken to the midfielder's camp, outlining a plan for coach Vincenzo Montella to make the Spain international their prime No10 and to build his team around the player.
Isco's situation is expected to accelerate next week with the players due back for preseason training.