Manchester United are closing in on Malaga star Isco.

The Daily Star says Arsenal, Liverpool and Tottenham are all thought to be tracking the exciting 20-year-old.

But reports in Spain suggest that United and German champions Borussia Dortmund are the only two sides to have shown firm interest in the Spanish youth international.

Old Trafford boss Sir Alex Ferguson is likely to view the attacking midfielder as an ideal replacement for veteran Paul Scholes.

And cash-strapped Malaga would find it hard to turn down a January bid of around £16million from the Reds, unless they can spark a bidding war between Europe's top clubs for the highly-regarded ace.