Real Madrid are encouraging offers for Isco.
The Spain midfielder has been on the outer of coach Zinedine Zidane's plans this season.
And AS says Real are eager to find a buyer in January.
Arsenal are keen and hope to repeat the same move that landed Dani Ceballos, on-loan to the end of the season.
But Manchester City have been following Isco long-term.
City boss Pep Guardiola has long appreciated the midfielder and sees him as David Silva's successor.
