AS and Cadena SER are both reporting that Real have won the race ahead of Manchester City for the starlet, who shone in the recent under 21 European Championships Spain won.
It would be a slight surprise if only for the facts that Isco is thought to be a Barcelona fan and worked with Manchester City coach Manuel Pellegrini for the last two years at Malaga.
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Liverpool have unveiled their new home kit for next season, sticking with the hugely popular retro styling of the current shirt.
The reputation of the Premier League means it is the most popular and one of the most watched leagues in the world.