The contract situation of Isco remains a dilemma for Real Madrid president Florentino Perez.

The midfielder is now inside the final year of his current deal and the Spain international will be free to commit to a pre-contract from January 1 with any foreign club.

Isco is demanding a pay-rise to take him level with skipper Sergio Ramos and also guarantees of greater playing opportunities.

The midfielder's father has a lucrative offer on the table from Manchester City, while Barcelona are also in contact.

For the moment, little progress has been made over contract negotiations, with Real showing little interest in matching City's offer.