The 29-year-old has struggled with injury woes in recent weeks but has found it hard to force his way into the Blancos' starting XI either way.
Isco is yet to play a single minute of Champions League football this term and has only started two La Liga games so far, while his contract is due to expire in the summer of 2022.
Milan have been tipped to complete a transfer for Isco either in January or next summer, but Calciomercato now claims that the Rossoneri are no longer pursuing the former Malaga man.
The report adds that the midfielder's age and wages are stumbling blocks that are too difficult for the Rossoneri to overcome, and Stefano Pioli's side could therefore turn their attention to Brest's Romain Faivre instead.
Isco has tallied 52 goals and 56 assists in 342 games for Real Madrid since his 2013 arrival, winning four Champions Leagues and two La Liga titles in that time. body check tags ::