Manchester City, Manchester United and Arsenal target Isco is set to sign a new contract at Malaga - which will include a £32million buy-out clause, reports talkSPORT.
The 20-year-old midfielder has attracted admiring glances from a host of different Premier League clubs, after a number of impressive performances in La Liga and the Champions League.
Gunners boss Arsene Wenger is a known admirer of the Spaniard, after he was linked with a move to the Emirates Stadium during the summer. But, those hopes have now been dashed after it emerged Isco is poised for lucrative new deal.
Roberto Mancini was reportedly ready to meet the player's current £16million buy-out clause when the transfer window reopens in the New Year. However, City are unlikely to pay double that amount if he pens a new contract.
Currently earning a modest £6,000-a-week, Isco will almost quadruple his wages when he signs his bumper new £23,000-a-week deal, as Malaga bid to secure his long-term future.
Manchester United has also been mooted as a potential destination for the talented youngster, as Sir Alex Ferguson continues to be linked with creative midfield additions at Old Trafford.