Man City & Real Madrid in talks over Isco move

Manchester City and Real Madrid are in discussions over a January deal for Isco, Goal understands.

The attacking midfielder has fallen out of favour under Rafa Benitez at the Santiago Bernabeu this season and has grown increasingly unhappy with his situation in recent weeks.

City manager Manuel Pellegrini continues to insist January arrivals are unlikely, but has admitted that Samir Nasri's long-term injury could make a winter transfer possible.

And while the club have strenuously denied reports that CEO Ferrano Soriano met with Madrid counterparts to thrash out a deal last week, it is believed talks have accelerated since New Year's Eve and a payment structure is being discussed.

A loan deal has been suggested, which would allow City to pay any transfer fee in the summer if desired, while Madrid could assess the lay of the land should Benitez lose his job in the coming months.

Isco, for his part, is keen to move to the Etihad Stadium, where he would link up once again with Pellegrini, who took him from Valencia to Malaga at the age of just 19.

Isco even came close to joining City before eventually electing to choose Madrid in 2013. A deal in principle had been agreed with Malaga and the playmaker had been offered a contract before los Blancos made a late intervention thanks to his fine form for Spain Under-21s that summer.

But he could now be reuinted with Pellegrini after becoming disillusioned with life in Madrid.

The 23-year-old caused controversy last month when he was filmed rubbing his eyes in exagerrated astonishment to see Toni Kroos sit alongside him on the bench for the away game at Villarreal.

The Andalusian saw plenty of action in the early part of the season as Madrid had to contend with injuries to several forwards, including James Rodriguez, Karim Benzema and Gareth Bale.

The return to fitness of those players has restricted Isco's opportunities, however, and talk of his unhappiness has featured in the Spanish press for several months; his red card against Barcelona in November was said to stem from his frustrations.

A January sale inevitably carries political significance for Madrid, though. Benitez is an unpopular figure with many of the club's supporters and appeared to be on the verge of losing his job heading into Wednesday's defeat of Real Sociedad.

He survived that match but his future remains very much uncertain heading into 2016, and even president Florentino Perez, the driving force behind Madrid's famous 'Galatico' transfer policy, has had to deal with opposition from the terraces.

Sections of the Santiago Bernabeu crowd have called for him to resign this season, and an online petition to that effect has garnered more than 6,000 signatures.

The sale of a popular player in Isco, therefore, would represent a precarious situation for both Benitez and Perez.