Reds set sights on impressive attacker.
Liverpool and Manchester City look set to compete for the signing of Real Madrid star Isco this January, according to Spanish source Fichajes.net.
The in-form Spaniard has attracted plenty of attention with his recent displays, and it is thought that he could be allowed to leave the Bernabeu for a reasonable price of just £31.5m this winter.
Liverpool need new signings after their poor start to the season, and could turn to Isco to provide some flair and creativity to their ranks, with new-boys Adam Lallana and Lazar Markovic failing to make an impact so far this term.
City are also keen, however, though Real will surely want to think twice about selling the former Malaga ace after his fine recent form.