Arsenal and Liverpool have been handed major transfer blow as it emerges Isco is close to agreeing a new and improved contract with Real Madrid.

The Spaniard had been linked with a move to the Premier League at the end of the season with Arsenal and Liverpool being the prime suitors. Isco was not getting enough playing time under Carlo Ancelotti which was the reason for his rumoured exit from Bernabeu.

As it turns out now, Isco has found considerable form in recent weeks and has forced himself back in to playing 11 for Real Madrid and is on verge of signing his new and improved contract extension with Real Madrid.

Ever since the arrival of James Rodriguez, Isco has seen him fall in the packing order. Due to the injuries to Gareth Bale, Luka Modric and James, Isco had the chance to start for Carlo Ancelotti and Isco has made the most of this opportunity.

Since the turn of the year, Isco has played 8 matches taking his total tally of games for the season 2014-15 to 16 matches. Isco is best playing in a free role behind the striker and Real Madrid’s playing style allows the skilful Spaniard to use the spaces in behind Karim Benzema and Cristiano Ronaldo.

Arsenal, Liverpool and Manchester United were all interested in signing Isco in the summer but with the recent development at Bernabeu reports that Real Madrid president Fiorentino Perez had promised Isco an improved salary package if Isco could establish himself in the playing 11.

Isco’s current contract runs till 2018 and is on a £60,000-a-week salary. Isco is expected to get his improved contract as promised by Fiorentino Perez and is set to stay with Los Blancos. Arsenal and Liverpool would continue to hope that there is some glitch in Isco agreeing his new contract and if there is some possibility of Isco coming to Premier League, Arsenal and Liverpool would gratefully accept the opportunity.

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