Madrid Set to release Isco in January
According to Diario Sport, Real Madrid are considering terminating Isco's contract in January.
If Madrid manage to find an agreement with Isco, they would save up around €6m.
His departure would also see Madrid free up squad space for a new player, should one arrive in January.
Isco enjoyed a short renaissance under Ancelotti but has dropped down the pecking order after the arrival of Camavinga.
As per the report, Carletto does not believe Isco fits the playing style he wants to implement at the club, while Real Madrid have 'lost confidence' in the player.
Juventus and Milan are said to be interested in signing the midfielder.
The 29-year-old's current deal runs out next summer. Either in January or in June, Isco will definitely leave Real Madrid as the club has no intention of extending his contract.