REAL MADRID president Florentino Perez has claimed the club have agreed a deal with Malaga which would see sought-after playmaker Isco move to the Bernabeu.
Despite interest from Manchester City, Isco (21) has long been linked with Madrid and the arrival of new coach Carlo Ancelotti appears to have accelerated the transfer.
Perez said: "There is an agreement with the club and the player. He will be presented next week after the medical."
Reports in Spain suggest the fee will be in the region of €27million.
Isco recently starred as Spain's U21 team retained the European Championship, scoring three times in their successful campaign in Israel.
Ancelotti said: "From what I have seen of him, it's clear he has a lot of quality. Spain's U21 side has a lot of great players and he is one of the best.
"He could get into any team in the world, so he could also play for Madrid."
Isco would be Madrid's second summer acquisition after they re-signed full-back Dani Carvajal on a buy-back deal from Bayer Leverkusen.