City are the latest Premier League club to admire the Spain international, who was previously linked with a move to Arsenal in 2014 as he struggled to impose himself on the Real squad.
Now a first-team regular, the Mail reports City must part with £75m to land the midfielder, shattering the current club record of £57m paid to Athletic Bilbao for Aymeric Laporte earlier this year.
Since moving to the Bernabeu in 2013, Isco has made more than 230 appearances although in the early years he appeared mainly from the bench. Now, a regular in the line-up, it’s claimed he is concerned about the prospect of Zinedine Zidane leaving the club in the summer.
With his place in the Spain squad for the World Cup finals all but assured, it’s a sensitive time for the 25-year-old. Real are in need of a major overhaul after an extraordinarily disappointing 2017-18 campaign so far.
Meanwhile, Guardiola is finding David Silva has intermittent injury problems, which means strengthening his midfield choices is a key action this summer. With Alexis Sanchez moving to Manchester United and Leicester City pricing Riyad Mahrez out of the market, Guardiola is looking toward his homeland for answers.