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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Who of Europe’s top strikers will move to England this summer?
After a dreadful start to their Bundesliga campaign, Borussia Dortmund appear to have weathered the storm after going five matches without defeat.