Liverpool have been linked with a move for the Real Madrid midfielder in recent days.
Liverpool, who sold Philippe Coutinho to Barcelona in January, have been linked with a summer move for Isco - along with his Bernabeu teammate, Marco Asensio - in recent days.
According to Balague, who works for Sky Sports as an expert on Spanish football, Madrid have received no offers for either player since the summer - and none of those were from Liverpool anyway.
The Spaniard has, however suggested that Isco - certainly - could be on the move when the transfer window reopens, as Los Blancos eye a deal for Chelsea's Eden Hazard.
"They started to throw out the idea that they wanted to get rid of Isco," wrote Balague in his weekly Q & A session on Sky Sports' website. "Remember Isco’s buyout clause €700 million so it is in the hands of Real Madrid, but if a good offer comes in for him they’d be willing to listen. [The Madrid manager, Zinedine] Zidane has just said he wants Isco to stay at the club forever, but the report that he wanted to get rid of him sounds like a leak by the club who wants to put Isco in the market.
"No offer has been received for him since the summer anyway and not from Liverpool. It’s the same with Asensio. No offer has arrived from Liverpool, not yet anyway. I don’t know if there will be or not but at the moment there are no offers on the table for either player since the summer. It is clear though Real would like to get rid of Isco and bring in Hazard."
Still only 25, Isco is arguably the perfect Coutinho replacement for Liverpool, whose chances of landing the Spain international are likely to hinge on their qualification for next season's Champions League - as well as the success of Real Madrid's Hazard pursuit.
Could Isco be Anfield bound this summer?