The attacking midfielder looks to be edging closer to a move to los Blancos though Manchester City remain in the hunt to sign the Spanish starlet
The Spain Under-21 star revealed earlier this month that he has received offers from Madrid and Manchester City though his latest comments hint at a preference for the Primera Division giants.
"Real Madrid are a club that excites me. They are one of the best teams in the world," Isco was quoted as saying by AS.
Madrid are reportedly willing to pay €30 million for Isco, while also including Russia U-21 attacker Denis Cheryshev in the deal.
Arsenal defender Nacho Monreal, who played alongside Isco at La Rosaleda between 2011 to 2013, claimed at the weekend that the creative midfielder has already signed at Madrid and that it's a matter of time before the transfer is made official.
The 21-year-old has a contract with Malaga until the summer of 2016, but has a limited fee release clause of €35m.