Deportes Cuatro claim that Isco told a Malaga supporter after a training session that talks were taking place.
Isco has also been linked with Manchester City, who are likely to appoint Malaga coach Manuel Pellegrini to their managerial hotseat next week.
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The start of the 2017-18 Premier League season is just around the corner and is shaping up to be one of the most competitive yet.
As always it is the so called “big clubs” that have splashed the most cash in the transfer window so far this summer. Manchester United or City? Arsenal or Tottenham? Who are the winners and losers of the transfer window so far?