Isco has reportedly grown increasingly frustrated at Real Madrid.
The Spaniard only made eight league starts under Zinedine Zidane last season, leading to suggestions that he was set to leave the Bernabeu in the summer.
However, new manager Carlo Ancelotti kept him at the club and has handed him two starts in the first four La Liga matches of the new campaign.
Nonetheless, Calciomercato states that Isco remains "unhappy" in the Spanish capital, with his contract set to expire next summer.
The report adds that Juventus and AC Milan are considering a move for the 29-year-old in the January transfer window.
Since signing from Malaga in 2013, Isco has made 339 appearances for Los Blancos, scoring 51 goals.
