Isco, 22, chose Real instead of joining his old Malaga boss Manuel Pellegrini at the Etihad last summer when he signed for £25 million.
But the signs are clear that the City boss could make a move this week with agent Francois Gallardo giving a mysterious clue to his future.
Gallardo said: "There is a player at Real Madrid who arrived last summer and the next season will leave again.
"I don't know whether he is to be loaned or sold. But it's Isco."
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