Malaga football chief Mario Husillos says Isco is set to sign a new contract.
Husillos says the Spain youth international is ready to commit to the Primera Liga club.
He said: "Isco's contract renewal is in its advanced stages and should be signed shortly.
"We will be here presenting Isco very soon. We will be here shortly to announce the renewal of his contract.
"It's not renewed as yet, but I think it will be very shortly. We understand it is virtually a done deal.
Husillos added: "There are no sure things in football. Everything can change in an instant."