The 27-year-old has hailed the Malaga starlet's ability and is hopeful his compatriot will chose to remain in Spain, rather than join Manchester City
Goal reported on Friday that Manchester City felt they were close to signing the 21-year-old in a deal worth £20 million, plus a further £10m in add-ons.
But Isco has since claimed Real Madrid are a club that excites him and Ramos insists he would welcome the midfielder to the Spanish capital.
"Isco is a great player and we always aspire to reinforce with the best. It's a joy [to hear rumours of a transfer]," Ramos told Onda Cero.
Ramos is currently preparing for Spain's Confederations Cup semi-final with Italy on Thursday, and while he is relishing the prospect of facing hosts Brazil in the final, the 27-year-old has warned his side to be on their mettle against the Nerazzurri.
"It'd be a dream to play a final with Brazil in Maracana but before you get to that stage you have to play the semi-final against Italy," Ramos continued.
"Italy bring us good memories, they are a great team, it will hopefully be a nice game.
"We want to be the champions but we will have to approach the match very humbly with a lot of respect for our opponents."