The 21-year-old has been heavily linked with a move to the Etihad Stadium in recent weeks and his former Malaga manager Manuel Pellegrini was confirmed as Roberto Mancini’s successor on Friday.
Isco has three years remaining on his current Malaga contract and the playmaker says that he will wait until after Spain’s Under-21 final against Italy in Israel before looking at where his future lies.
“In seven days I will decide my future,” said Isco.
“After the U21 Euros I will analyse my situation and make the best choice for my future.
“At the moment I am calm and focused on my work with the national team.
“City or Madrid? I can’t say. Pellegrini is a great coach, though, of that there is no question.”
Isco has scored 16 goals in 85 appearances for Malaga after completing a move to Pellegrini’s side from Valencia in 2011.