Real say they are set to sign Isco from Malaga

Madrid: Real Madrid says they have a deal to sign Malaga midfielder Francisco "Isco" Alarcon, one of Europe's most prized young players. Madrid club president Florentino Perez told Spanish national radio "we have a deal with the club and we have a deal with the player."

Florentino says that Isco has to pass a routine medical exam and "it's probable he will be presented next week."

The 21-year-old Isco helped Malaga reach the Champions League quarter-finals last season and guided Spain to the under-21 European title this summer.

Madrid hired Carlo Ancelotti as manager on Wednesday to replace Jose Mourinho after he returned to Chelsea following a season without a major trophy.