The Premier League club had been in talks with Real Madrid and there was a feeling that a big-money deal would suit both parties, but the playmaker is keen to work with his idolManchester City 's chances of signing
Isco in January have been dealt a blow by the arrival of Zinedine Zidane as Real Madrid coach, Goal understands.
City and Madrid had held talks over a big-money transfer for the playmaker, who had fallen out of favour at the Santiago Bernabeu under the watch of Rafael Benitez.
The Premier League club had been lined up as an escape route for the Spain international as life in the Spanish capital became increasingly frustrating.
READ MORE | No January moves likely for City - Pellegrini
Isco and James Rodriguez had both seen their playing time reduced by Benitez and the two men watched from the bench as Madrid drew 2-2 with Valencia on Sunday in what proved to be the former Liverpool boss' last game in charge, as he was sacked following weeks of mounting pressure due to growing player unrest and a number of patchy performances.
It had been hoped by City that the 23-year-old's unhappy predicament would facilitate a transfer to the Etihad Stadium, and indeed it is still believed that he would be keen to once again work with Manuel Pellegrini, the man who took him from Valencia to Malaga at the age of 19.
But independent sources close to the operation have indicated to Goal that the opportunity to be coached by Zidane over the next six months is likely to scupper any chance of leaving the club in the immediate future.
Isco is said to be very excited by the prospect of working with one of his idols and will meet with Zidane in the coming days to establish where he features in the former France international's plans for the club.
And it is expected the Andalusian will be told he will have an increased role as Madrid look to get back on track in La Liga and fight for the Champions League.
City had been encouraged that Madrid were willing to do a deal this month - at the right price - and could yet persist with their interest, but Zidane's insistence that Isco will see more action will be a spanner in the works for officials from both clubs.
Zidane said at his official unveiling on Tuesday: "All the players will be important. James and Isco are phenomenal players and therefore they will be important as well.
"The important thing will be to motivate all players. There's been a change, but Benitez's job has been good and I wish him luck.
"I will try to bring a personal touch to the team. I want my football to be different, and balanced."
Source: Goal.com
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