Tottenham Hotspur were believed to be circling at the start of 2017, and Isco regularly hinted to the press that he could leave Real Madrid at the end of the 2016-17 season.
The 25-year-old actually signed the deal in July, before heading to the U.S. for Real's pre-season tour, but it was agreed not to make the extension public until this month. I know where I am and what to do.
While the 21-year-old - who joined Los Blancos from Real Mallorca in 2015 - does not want to leave the Estadio Santiago Bernabeu, he is prepared to if manager Zinedine Zidane cannot offer him assurances of more game time.
The 33-year-old midfielder set alarms bells ringing at the Nou Camp on Thursday after Barcelona revealed that the captain didn't train with the rest of his teammates - just three days before the first leg of the Spanish Super Cup clash. Jose Mourinho's side were forced to dance to Isco's tune on the night as the Spaniard, operating in the number 10 position, orchestrated another Real Madrid victory.More news: Critics are killing me in England - Morata
One of the keys to Madrid's Champions League and Spanish league titles last season was the decision by coach Zinedine Zidane to limit Ronaldo's minutes during the long campaign.
"They have had changes but Barcelona are Barcelona".
"We're all fit, healthy, physically we're in good condition".
"Here, you live from day to day; within a year you may not be here".
However, Iniesta allayed any fears on Friday after being pictured back in training as the Catalans continue their preparations for the visit of Real Madrid.
On the tight match at the Philip II Arena in Skopje, he added: "Madrid is a very powerful team and we are happy".