Manchester City are closing in on Malaga winger Isco.

The Sun says once Manuel Pellegrini, 59, is in place they hope it will give them an edge over Real Madrid in the race to sign £17million-rated Isco.

Despite reports last week that City had dropped their interest, they still believe they can land the Spain Under-21 midfielder.

And if they close the deal it would see their summer spending smash the £60m mark with Fernandinho and Jesus Navas already on board.