Signing Isco would have plunged Spurs star Christian Eriksen’s future into doubt.
The Danish international has been locked in contract talks all summer and endured a tough start to the season.
Eriksen, who prefers to play as a No 10, has been subbed in two of his three appearances for Spurs so far.
But he now looks set to sign a new five-year contract to become one of the club’s highest earners.
The £30,000-a-week midfielder will more than double his wages after being offered a deal worth around £65,000-a-week.