Manchester City have reportedly been told that Isco will not be allowed to depart Real Madrid this transfer window.
The unsettled midfielder had been subject of interest from a number of Premier League clubs, including Manchester United and Chelsea, after finding opportunities limited under former Madrid manager Rafael Benitez.
City had been leading the charge for his signature, with chief executive Ferran Soriano even flying out to the Spanish capital to negotiate a loan deal with an option to buy.
Now the 23-year-old has held talks with new manager Zinedine Zidane, according to The Mirror, and has been told that he will play a key role in the side from now on.
The Spaniard, who is keen for regular playing time ahead of the European Championships this summer, has agreed to stay at the Bernabeu and reassess his situation at the end of the season.
Isco has scored once and registered three assists in 14 league appearances this term.
