Arsenal are keen on signing Isco from Real Madrid on a six-month loan deal, AS reports.
However, they face strong competition from Sevilla.
Isco, 28, has featured just 11 times for the Spanish champions in all competitions this season and has been deemed surplus to requirements having fallen out of favour with Zinedine Zidane.
The Spain midfielder is destined to leave the Bernabeu when the transfer window opens later this week and although his preference is to remain in Spain, Arsenal remain in the hunt.
Arsenal have already taken Dani Ceballos on a season-long loan from Real, but would be permitted to sign Isco on a temporary basis.
Premier League rules prevent clubs from signing more than one player on loan from the same team in England, but the guidelines differ when it comes to recruiting players from abroad with Tottenham currently retaining the services of Benfica duo Gedson Fernandes and Carlos Vinicius.
