Real Madrid president Florentino Perez has declared that an expected new contract for Isco has been finalised and will be formally announced in the coming days.
It was rumoured in early August that Isco had penned fresh terms at the Bernabeu that would reward him for his form last season and increase his buyout clause to €700m.
The announcement, which was potentially expected after the Spanish Super Cup last month, hasn't come yet, but Perez insists it will be very soon.
"Isco came here very young and has only improved. What we thought he was going to become is what he is going to be," Perez said to Cadena Ser, as quoted by Marca.
"His renewal will be announced shortly in the coming days. Two years ago people said it was necessary to sell Isco, but that would now have been a mistake."
Perez also dismissed any notion that the 25-year-old, who arrived from Malaga in 2013, has been a target of rivals Barcelona despite reports.
Florentino: "Isco has renewed his contract. We will announce it soon, in the coming days, with all the new contracts." [Zidane too I guess]— Dermot Corrigan (@dermotmcorrigan) September 8, 2017
"Barça have not tried to take any player from us this summer. In summer a lot is said. If we took note of what was said two years ago, we would have sold Isco and now we would have a huge misfortune."
"With Ceballos there was competition from Barcelona, but with [Luka] Modric, Isco and [Marco] Asensio there was nothing."
The Spanish midfielder then started the Champions League final ahead of Bale in the Welshman's home-town of Cardfiff, pointing to his new-found importance in Zinedine Zidane's team.
Bale, formerly the most expensive player in the world, was later heavily linked with an exit from the Bernabeu, with his future at the club seemingly blurred.
It never really came close to materialising, though, and Perez still fully backs the 28-year-old.
"Bale is one of the great players we have and we are very happy with him," the president said. "There were no offers for him and [Jose] Mourinho said what he said in a nice way.
"I do not know what will happen next year, as nobody knows. He has won many titles, he has contributed in two or three Champions League finals, in the Copa del Rey - he has had an important role."