City had their hopes of signing the 20-year-old playmaker dashed last month when he signed a new contract at the La Liga outfit, with his new deal said to contain a £30m buy-out clause.
Isco says he would still consider a move away from La Rosaleda but admits that it would take “a lot of money” to secure his services.
“If a club decides to come and sign me they’ll have to be a big club because it’d be a lot of money,” said Isco.
“Therefore, if it would help Malaga, I wouldn’t have a problem accepting a transfer, if it benefited both of us.”
Isco, who joined Malaga from Valencia in 2011, has scored 10 goals in 29 appearances in all competitions this season.
Get enhanced odds of 18/1 on Andy Murray to win Wimbledon or 10/1 on Novak Djokovic when you open a Paddy Power account.