The recently retired coach has urged his former club to try and buy the Spain Under-21 international ahead of the 2013-14 campaign
The attacking midfielder is continually being linked with a move to a bigger club following his fine performances in 2012-13 and revealed earlier this week that Manchester City and Real Madrid are keen to lure him away from his current club ahead of next season.
However, if it was up to Heynckes, the Spain Under-21 international would continue his career at the Bundesliga giants instead.
"Who should Bayern sign? There are some very interesting players out there, like Malaga star Isco. He's a class act in midfield," Heynckes told Kicker.
The 21-year-old has a contract with Malaga until 2016, but has a €35 million buy-out clause.
Bayern have already secured the services of Mario Gotze from Borussia Dortmund and Jan Kirchhoff from Mainz for next season.
Heynckes announced his retirement earlier this week after guiding Bayern to a historic treble this term. The Bavarians had previously already appointed Pep Guardiola as his successor.