The Blues were linked with a big-money bid to try and bring the Spain attacking midfielder to Stamford Bridge last month as they ponder bolstering their options in the mid-season transfer window.
The 26-year-old’s future has been something of a source of speculation of late because of his lack of playing time at Real Madrid so far this season.
Isco has only started five La Liga games for the Spanish side so far this term and that has prompted talk of a move away from the Bernabeu.
However, the Spain international has now appeared to indicate that he has no plans to leave the club in the new year in a recent interview.
Speaking in an interview with Spanish outlet Deportes Cuatro, as quoted by Metro, Isco said: “I’m very excited about the new year.
“I’m not going to go in the winter market, I’m very happy, of course I want to continue with Madrid to continue winning titles.”
Chelsea FC are likely to be linked with a number of players in the coming days and weeks as they consider bolstering their squad for the second half of the season.
The Blues are currently fourth in the Premier League table as they prepare for their home clash against Southampton on Wednesday.
MORE: Man United latest news
MORE: Arsenal latest news
MORE: Chelsea latest news
MORE: Liverpool latest news