Manchster Uuted and Manchester City are going head-to-head for Malaga star Isco.

The 21-year-old Spain international, who has a £30million buy-out clause in his contract, is wanted by almost all of Europe's top clubs, says the People.

Along with Manchester United and Manchester City Isco is very much on the radar of Real Madrid and Barcelona.

Chelsea have also shown an interest but, with Juan Mata, Oscar and Eden Hazard playing similar roles, Isco may not be keen. That could change if Jose Mourinho takes over at Stamford Bridge.

Ferguson's interest suggests that United are ready to part company with Paul Scholes and Darren Fletcher.