Manchester City are in talks with Malaga coach Manuel Pellegrini.
The Daily Express says reports in Spain indicate that director of football Txiki Begiristain met with Jesus Martinez - who represents Pellegrini and a number of prominent players - for lunch in Madrid yesterday.
It is also claimed that the pair met in February in Porto to discuss Pellegrini's future.
The Chilean is understood to want to take Isco with him to City, while Martinez has also sought assurances from Begiristain that Sergio Aguero won't be sold.