With contract talks at a stalemate, Isco's future at Real Madrid remains clouded.

Manchester City have proved the big stumbling block for Real president Florentino Perez over attempts to secure Isco to a new deal.

With just a year to run on his existing contract, Isco's future remains undecided.

Diario Gol says before breaking up for holiday, Isco's agents informed Perez of €8 million-a-year contract offers being on the table from Manchester City and Barcelona.

Barca have since pulled back as they focus on PSG midfielder Marco Verratti, however City's interest remains. Isco has told Perez to match their offer or he's off.

For now, Perez refuses to meet the player's demands, but a decision will soon have to be made with Isco free to sign a pre-contract with any foreign club from January 1.