According to Defence Central, Mikel Arteta wants Isco at the start of 2021. He has urged Arsenal to make a move for the Spaniard. Isco has been going through some tough times at the Bernabeu. In 2019, Santiago Solari gave him cold treatment and left him with fewer minutes.
Then Zidane was reappointed but he struggled with injuries. This season the Frenchman has rarely used him in the team. The former Malaga playmaker has just made seven appearances this season. He is yet to start a Champions League game.
Isco is down the pecking order and his former manager Carlo Ancelloti wants to bring him to Everton. However, the report has stated that the Gunners are willing to offer a loan deal with an option to make the move permanent.
The Los Blancos midfielder has just 18 months left on his current contract. Currently, he looks out of form and fitness as well. This season he has struggled to establish himself as a regular under Zidane. With the Euros on the horizon, a move could be possible.
Can Arsenal sign him in January?

It is very much possible that, Arsenal might be able to sign him on loan. At the age of 28, it is not ideal for him to sit on the bench. A player of his quality needs more playing time. Arsenal are a big club and they are in a position to give him more playing time.
However, the question that comes here is, whether they will be able to sign him permanently. If the Gunners fail to qualify for Champions League next season, then it will become difficult for them to sign permanently.
Only Mikel Arteta might be able to pursue him to commit his future to the Emirates. A player of Isco’s quality will attract more top teams as well. Thus for the Gunners to sign him permanently they will have to qualify for Champions League.
When Arsenal will open up talks to sign him permanently he will only have 12 months on his Real Madrid contract. This will help them to get him at a lower price, considering the current financial crises created by a coronavirus.
Is Isco needed at Emirates?

In recent games, Arsenal has struggled to score goals. It has been suggested that they need a creative midfielder. Some have also suggested that Mesut Ozil should be brought back into the first team. However, it looks unlikely any time soon.
Thus Isco can be the player to provide the creative outlet in the team. Though he may not be the ideal player at the club. The Spaniard has not yet reached full fitness. It has been suggested Ozil has been given cold treatment because of his lack of work rate.
Isco is not a player who is known for his work rate. Thus it would not make any sense to sign a player like him. He is a player who can raise the profile of the club but it looks unlikely that he is the right midfielder at the club.
Thus they should look for another player. Dominik Szoboszali has been linked with a move to Emirates. Alongside him, Housam Auror has been linked with the club. These two players would be a better fit for Mikel Arteta rather than Isco.