Isco
Isco's current contract is set to expire at the end of next season Getty Images

Real Madrid star Isco is reportedly closing in on a new €8m (£6.9m, $8.7m)-a-year deal at the Santiago Bernabeu to put an end to the recent speculations linking him with a shock move to Barcelona. Chelsea, Tottenham, Manchester City and Juventus have also been linked with the Spaniard in recent months but AS claims that sources close to the player have confirmed that instead he is ready to sign a new long-term contract to continue at Zinedine Zidane's side.

Isco, 24, joined Real Madrid in the summer of 2013 from Malaga after garnering a reputation as one of the most promising talents to emerge from Spanish football. He made an instant impact at the Santiago Bernabeu under Carlo Ancelotti but saw his playing time restricted since the appointment of Zidane, being behind Luka Modric and Toni Kroos in the pecking order.

The Spanish international was already linked with a move to Tottenham last summer and last month revealed that he would consider leaving the club in the coming summer transfer window due to his frustration over a lack of playing time.

Marca later added that the Real Madrid star has already made the decision to leave the Champions League winners, with Manchester City in pole position to secure his services ahead of Chelsea, Juventus and Barcelona.

Last week Catalan radio station Rac 1 reported that Barcelona have offered Isco a bonus of €20m to turn down a new deal at Real Madrid and move to the Nou Camp as a free agent once his contract expires in 2018.

Barcelona captain Andres Iniesta and Denis Suarez added more fuel to the saga after claiming that the Real Madrid midfielder would be more than welcome at the Camp Nou.

However, it looks like the saga is set for a U-turn as Spanish publication AS is reporting that the midfielder is instead set to sign a new contract at Real Madrid.

The Spanish publication suggests that Los Blancos have been forced to react to that speculation by offering Isco a lucrative pay rise to snub the overtures of Barcelona. Yet, the new long-term deal will see the Real Madrid player increasing his current €3m-a-year wages to €8m–a-year.

AS claims that sources close to the Real Madrid star confirmed that the agreement is near and will see Isco staying at the Champions League winners for at least five more campaigns.