Arsenal are thought to be interested in signing the Spanish international Isco when the transfer window reopens next month.
The 28-year-old playmaker has started just three league games for Real Madrid this season and he needs to leave the club in order to play regular first-team football.
According to Metro, the London club are keen on signing him for the remainder of the season on a loan deal but they will face strong competition from Sevilla.
Apparently, the midfielder is keen on a reunion with his former national team manager Julen Lopetegui and therefore Sevilla is his preferred destination.