Manchester City are close to sealing a deal for Malaga winger Isco. City are making progress in their move for young midfield ace Isco - who has a £27million release clause in his contract at La Roseleda, says The Sun.

The 21-year-old - who made his international debut in February - is viewed as one of the best young attacking midfielders in Spain and is also a target for Real Madrid.

He has played with Manuel Pellegrini at Malaga for the last two years and it now looks likely the pair will be reunited at City this summer.

Isco is believed to be keen on making the move but the Sky Blues are hoping they can drive down the price.