Manchester City and Arsenal will have to act fast if they want to sign Malaga wonderkid Isco after reports in Spain claimed Real Madrid are in advanced moves to sign him.
Isco, 20, is rated one of the best young talents in La Liga and has played a major role in helping Malaga reach the knockout stages of the Champions League.
Both City and Arsenal have been following his progress and were expected to step up their interest at the end of the season.
But reports in Spanish newspaper AS claim Real Madrid have now emerged as the strong favourites to clinch his signature.
Isco revealed earlier this month that he would be prepared to leave Malaga to ease the club's financial problems.
The talented forward has a £30m buy-out clause in his contract and looks certain to make a big money move at the end of the season.
Roberto Mancini and Arsene Wenger will have a major battle on their hands to persuade Isco to turn down a move to the Bernabeu and make a move into the Premier League.