Chelsea have been offered the chance to sign midfielder Isco in a £44million deal by Real Madrid in January.
Real are trying to offload players such as Isco, Gareth Bale and James Rodriguez to make way for a move for Tottenham playmaker Christian Eriksen in next month’s transfer window and also comply with UEFA's Financial Fair Play regulations.
Isco, 27, has struggled to hold down a regular place at the Bernabeu under coach Zinedine Zidane this season.
Chelsea boss Frank Lampard is looking to strengthen his squad after being handed a £150m transfer kitty to spend and Isco is a target, as per The Mirror.
According to Marca, the Spanish giants need to balance the books after spending £295m in the summer to bring in the likes of Eden Hazard and Luka Jovic and only recouping just £126m in player sales.
With UEFA's rulings stating that the maximum net spend one club can have is €100m (£85m), the difference between the two figures is of huge concern to Los Blancos and should they fail to close it they could be facing FFP sanctions.
Therefore, the futures of Bale and Rodriguez at the Bernabeu could be under threat.
This article was most recently revised and updated 3 years ago