Real Madrid are prepared to hand Isco a free transfer in January.
With his deal due to expire in June, Real Madrid are willing to pay out Isco's contract and cut him loose when the market reopens.
Sport says Real, with their 25-player squad list full, wish to release Isco in order to free up space for a potential addition.
Isco's place in Real coach Carlo Ancelotti's plans has now been usurped by French youngster Eduardo Camavinga and he has little chance of minutes this season.
Need a VPN? Or seeking to switch? Then support Tribal Football by clicking here to sign up with our official partners NordVPN. Not only will you receive the best VPN experience, but also great discounts by signing up via Tribal Football. Thanks for your support!