Malaga sporting director Mario Husillos insists Isco's new contract talks are progressing positively.
Isco is a top target for Manchester City and Manchester United.
Husillos told Malaga Hoy: "Talks for renewal are still on track.
"The boy wants to stay at the club because it is clear that growth and performance have to be here.
"Isco is intelligent and is still young. He will soon be in the national team."