Isco, 26, who has won four Champions League titles, fears for his future with Real ready to bid for Chelsea’s Eden Hazard.
The Premier League champions, who have ruled out any activity in the winter transfer window, are keen to thrash out a summer deal for the Spain international. City boss Pep Guardiola is known to be a big fan of Isco, and would jump at the chance of taking him to the Etihad.
Isco knows that his time on the pitch will be cut dramatically should Real land Hazard and he has made it clear that he would seriously consider a switch to the Premier League.
Chelsea are desperate to keep Hazard but may be powerless to prevent the Belgian leaving in the summer.
Hazard’s contract expires at the end of next season, meaning Chelsea could lose him for nothing if a stand-off develops.
Cashing in on the Belgian at the end of this campaign therefore ay make sense to the Blues.
And the sale could see City benefit in the form of Isco arriving to the Premier League.
City boss Guardiola is expected to reshuffle his midfield in the summer, with David Silva the wrong side of 30.
Isco has been on City’s radar for months but only recently has speculation over his Real future intensified.
City are currently battling with Liverpool for the Premier League title but lost to Chelsea 2-0 earlier this month.
The Blues are just about still in the title race at this stage of the season but, heading into the weekend, were 11 points behind leaders Liverpool after the Reds beat Wolves on Friday night.