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According to Daily Express, the champions of the Premeir League hope to have both players before the deadline of Thursday.
Pep Guardiola followed Isco all summer and could now take advantage of the fact that Madrid has to reduce its payroll.
Meanwhile, City turned his attention to Ake after judging Harry Maguire, who should join Manchester United for 80 million pounds, be too expensive.
The Dutch international is valued at around 40 million pounds sterling by Bournemouth, for whom he impressed last season.
CIty will face Liverpool in the Community Shield on Sunday, before opening his Premier League campaign against West Ham next weekend.
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