Arsenal set to battle Manchester City for Real Madrid midfielder Isco

Arsenal are preparing a £35m ($52.31m) move for Real Madrid midfielder Isco in the summer, according to the Sunday People.

The midfielder has fallen out of favour with manager Carlo Ancelotti and with James Rodriguez back into the squad after recovering from a broken foot, his order in the pecking order has gone further below, which has alerted clubs from across Europe.

Arsene Wenger is a huge fan of the player and has been monitoring him since his time at Malaga and will be looking to bring in the player as a long term replacement for Santi Cazorla, who has entered his thirties.

The prospect of playing Mesut Ozil and Isco together could be a great prospect for the north London club, but they have to fend off competition from Manchester City, who are going for a massive squad rejig in the summer.

Madrid are looking to sign a midfield enforcer in the summer, with Marco Veratti and Paul Pogba currently at the top of their list. The management is therefore looking to dispose of any deadwood to make funds available for further acquisitions.

The midfielder started in Real Madrid's 3-1 win over his former club Malaga, but failed to impress in that role and is unlikely to make the team in the next game. However, a season ending injury to Luka Modric can open up further opportunities for the 22-year-old, who can use this window to show his talent to prospective clubs across Europe.

The Gunners have already been linked with a move for Morgan Schneiderlin to add some steel to their midfield in the summer but Wenger may be open to signing Isco should they be able to move players like Jack Wilshere, who has attracted interest from City.

The midfielder has spent the major part campaign on the sidelines nursing an ankle injury, brought upon by a dangerous tackle by Paddy McNair in Arsenal's 2-1 loss to Manchester United at the Emirates stadium in November. However, he is currently back in contention and was on the bench in the Gunners' 2-1 win over Reading in the semifinal of the FA Cup.