Among the names linked to AC Milan for the attacking midfielder position after the exit of Hakan Calhanoglu as free agent to Inter, Isco's profile has been oftentimes mentioned.
Although a deal is difficult, he remains reportedly on the club's wishlist.
According to what is reported by the Spanish outlet of Mundo Deportivo, this could be the transfer window which will see Isco leave Los Blancos and change destination.
Isco's contract expires next year in June. The playmaker is not part of newly-appointed coach Carlo Ancelotti's plans.
The source claims that Real Madrid has placed the 29-year-old player on the transfer market list as they are looking for a potential buyer from him.
The AC Milan target is rumoured to be valued at a fee around 20 to 25 million euros, concludes the Spain-based outlet's report.