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 reputation of the Premier League means it is the most popular and one of the most watched leagues in the world.
Five English clubs will compete in the last sixteen of the Champions League for the first time ever as Liverpool, Manchester United, Manchester City, Chelsea and Tottenham face some difficult away matches.