Isco shows his magnificent touch against Villarreal
The attacking midfielder has demanded that Pep Guardiola sign his countryman Morata, who cost Chelsea £70m in the summer but has struggled under Antonio Conte, if he is to move to the Etihad Stadium.
Diario Gol say that the pair of Spain internationals, who are known to be close friends, are set on playing alongside each other again as they did in Madrid.
Isco is said to have accepted that his future lies away from the Spanish capital with Florentino Perez having reportedly placed him on the transfer market.
The 25-year-old is not a guaranteed starter under Zinedine Zidane, though he has made 37 appearances this season, and plans to move elsewhere to become more of a key figure.
Premier League champions elect City are thought to be keen on Isco, with Diario Gol stating that likewise, the player would be enthusiastic about a switch to England.
But the one condition is that ex-Madrid front-man Morata must join him in the North West.
Morata has looked out-of-sorts for the Blues despite an excellent start which saw him score seven goals in his first seven appearances in the Premier League and Champions League.
Just four goals have come in his last 28 matches he has played since then, with Morata currently on an 11-game drought and having come under criticism for a string of high-profile misses.
He was guilty of wasting three goalscoring opportunities in a big clash against Arsenal in January.
But Guardiola is thought to be after a powerful striker to rival Sergio Aguero and Gabriel Jesus and offer City an alternative outlet up top, despite City having scored 118 goals in 45 games in all competitions this term.
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Diario Gol also mention Harry Kane as a potential target, though say the Tottenham Hotspur striker would cost well in excess of £150 million, with Morata therefore a much cheaper alternative.
But it is far from certain that Isco will leave Real Madrid. His future hangs on Zidane’s future at the Santiago Bernabeu.
The Frenchman has come under increasing pressure for Madrid’s disappointing campaign. The title race is all but decided with Los Blancos 15 points behind leaders Barcelona and seven behind rivals Atletico Madrid in second.
And they also crashed out of the Copa del Rey, leaving the Champions League as their only remaining prospect of success.
Diario Gol report that if Zidane leaves and Germany boss Joachim Low or Tottenham Hotspur boss Mauricio Pochettino are appointed as his successor, then Isco will reconsider leaving.
It is thought that Isco will delay his decision until after the World Cup, with his performances for Spain in Russia likely to have a large say in where he ends up for the 2018-19 season.