Isco has agreed a new contract with Real Madrid to keep him at the Bernabeu until 2022, the club have confirmed.
The 25-year-old, whose previous deal was due to expire in 2018, will pen a five-year extension.
In a statement made on Thursday, Madrid said the player would appear before the media on Friday.
Isco has been rewarded for his impressive form last season, which saw him step into the Madrid team following Gareth Bale's injury and help them to the Champions League and La Liga title, while he also scored as the club beat Manchester United to win the UEFA Super Cup last month.
The Spain international, according to AS, will earn an annual salary of €6 million on his new contract, which reportedly has a €700m release clause in it.
AS reports that Madrid are keen to include large release clauses in their players' contracts to avoid the scenario that saw Barcelona lose Neymar after Paris Saint-Germain activated his €222m clause.