The attacking midfielder has fallen down the pecking order at Real Madrid and he is expected to leave the Spanish giants this month.
There is no doubt that Arsenal could use an attacking midfielder like him right now but it seems that Mikel Arteta is willing to abandon his plan of signing Isco due to the emergence of Emile Smith Rowe.
The talented Arsenal youngster has made quite an impact in the first team. It makes sense for Arsenal to be patient with him and give him the opportunities he needs to develop.
Signing an established player like Isco would push the youngster down the pecking order and he will be starved of game time.
Meanwhile, the Gunners have been linked with a move for the Norwich midfielder Emiliano Buendia.
The Argentine did well in the Premier League last year and he has proven to be an important player for the Canaries in the championship this season.
It will be interesting to see if Arsenal can convince the championship side to sell Buendia this month.
Apparently, Arsenal are willing to offer two players in a bid to sign the 24 year old who is one of Mikel Arteta’s top targets.
The two players on offer are thought to be Joe Willock and Reiss Nelson.
Midfielder Matteo Guendouzi is currently on loan at Hertha Berlin and the Arsenal player has managed to make quite an impression in Germany.
It seems that his performances have impressed the Arsenal fans and they are now calling for his return to the club.
The 21 year old fell out with manager Mikel Arteta and it will be interesting to see if he can salvage his Arsenal future at the end of the season.