
City and Madrid had held talks over a big-money transfer for the playmaker, who had fallen out of favour at the Santiago Bernabeu under the watch of Rafael Benitez.
The Premier League club had been lined up as an escape route for the Spain international as life in the Spanish capital became increasingly frustrating.
Isco and James Rodriguez had both seen their playing time reduced by Benitez and the two men watched from the bench as Madrid drew 2-2 with Valencia on Sunday in what proved to be the former Liverpool boss’ last game in charge, as he was sacked following weeks of mounting pressure due to growing player unrest and a number of patchy performances.
It had been hoped by City that the 23-year-old’s unhappy predicament would facilitate a transfer to the Etihad Stadium, and indeed it is still believed that he would be keen to once again work with Manuel Pellegrini, the man who took him from Valencia to Malaga at the age of 19.
But independent sources close to the operation have indicated to Goal that the opportunity to be coached by Zidane over the next six months is likely to scupper any chance of leaving the club in the immediate future.
Isco is said to be very excited by the prospect of working with one of his idols and will meet with Zidane in the coming days to establish where he features in the former France international’s plans for the club.
• Culled from Goal.com
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