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Isco is not going anywhere. At least, that's what his agent Rafael Comino has confirmed to TuttoJuve. "He is not leaving Real Madrid. They say that because they want to sell newspapers," said Isco's agent.
Apparently, Juventus FC were interested in his signing, but Real Madrid want to keep him and he is willing to stay and fight for a starting spot in Rafa Benítez's XI. Mateo Kovacic is set to join the club but that should not affect Isco's minutes, as the Croatian will be Modric or Kroos' first replacement and not a number 10 playing behind the striker.
Isco and James seem to be destined to fight for the spot behind the striker unless Benítez decides to change his formation and bench one player out of Benzema, Ronaldo and Gareth Bale. That doesn't seem very likely, so the manager will have to keep his players motivated for the season ahead.