Cape Town - Liverpool and Arsenal have been told that Spanish attacking midfielder Isco will not be leaving the Santiago Bernabeu.
Metro report that Real Madrid boss Carlo Ancelotti has ruled out letting Isco leave the Champions League winners.
Arsenal and Liverpool were thought to be on the trail of the 22-year-old midfielder after the player failed to nail down a starting berth at Los Blancos.
Ancelotti has quickly come out to put an end to the rumours that Isco may be allowed to leave in order to find more regular game time.
"He had a great season last year and we have a lot of faith in him. He is the future of this squad," Ancelotti said.
"Isco and [Asier] Illarramendi have a lot of personality and respect my decisions.
"They are always ready to play." said Ancelotti.
Isco scored eight goals in 32 league appearances last season for Real Madrid as they ended La Liga in second place.