The Spain international has made 20 appearances for Madrid during the 2020-21 campaign, with 17 of those coming in the Spanish top flight.
According to Sport, Inter manager Antonio Conte is keen to bring the 28-year-old attacker to San Siro during this summer’s transfer window, with Los Blancos said to be open to a sale.
The report adds that the veteran midfielder will not be signing an extension to his current contract, which is due to expire in June 2022.
Sevilla are also said to be keen on the player, while there is also said to be interest from a number of Premier League clubs.
Isco racked up 327 appearances for Real Madrid in all competitions, winning two La Liga and four Champions League titles.