The prodigious youngster has shone in the Champions League for the Andalucians this season, underlining his growing reputation.
A number of teams are keen to sign him, and according to El Mundo Deportivo Real Madrid President Florentino Perez is particularly keen on Isco.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.