The Spain international is being chased by the Premier League runners-up but Los Blancos are leading the race, and the attacking midfielder tried not to give much away
On Wednesday Goal revealed Manchester City are targeting the 21-year-old as part of a £120 million summer spending spree, but Madrid are also believed to be monitoring his situation closely.
The Spain international, who on Thursday was named in the Under-21 squad for June's European Championship final, has a contract at La Rosaleda until 2016.
When asked by Spanish television channel Cuatro about the Madrid interest, he said: "We’ll see, let’s see what happens..."
Blancos director Francisco Aguilar revealed on Thursday that a transfer deal for Isco is a long way from completion and is aware that meeting his €35m (£29.95m) buy-out clause will be mandatory.