Malaga executive vice-president Moayad Shatat says that Isco will stay at the club for another season unless a satisfactory offer comes in.
Both Manchester City and Real Madrid have been heavily linked with the 21-year-old this summer but the Andalusians are determined to hold on to their star for another year, at least on loan.
"We're in negotiations with Isco. It's true that offers have come in for him, but we're always going to look for the best price for his exit,” he told Marca.
“We don't need to let Isco go cheaply. If it's not enough, we're not going to sell him. We haven't received any transfer offers which include the option for him to continue with Malaga on loan for a season.
"Isco is a very important player, everyone thinks it would be great if he stayed and if the correct offer doesn't come in, we're not going to sell."
Isco scored 12 goals in 47 appearances for the club over the course of 2012-13.