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According to As and EuroSport, Isco Alarcón will officialy be a Real Madrid player next week after Florentino Pérez reached an agreement with Málaga's board. Cadena SER also reported the news on Friday night. Apparently, Real Madrid is still waiting on Carlo Ancelotti to sign for the club before officialy confirming Isco's signing, which should happen on July 1st for financial purposes. So, both the Ancelotti and Isco signings could be announced next week but the actual signature of their contracts won't happen until June ends.
Isco refused to join Manchester City and chose Real Madrid instead. He will have to fight for his spot in both teams, as both David Silva and Mesut Özil are two of the world's greatest playmakers. Isco will have the chance to play in both wings though, since he's performed quite well in the left with Málaga.
If the reports are correct, Isco will sign a five-year contract with los blancos.