According to theDaily Express, the Premeir League champions hope to land both players ahead of Thursday’s deadline.
Pep Guardiola has been tracking Isco all summer and could now take advantage of the fact that Madrid need to trim their wage bill.
Meanwhile, City have turned their attention to Ake after deeming Harry Maguire, who is set to join Manchester United for £80m, to be too expensive.
The Netherlands international is valued at around £40m by Bournemouth, for whom he impressed last season.
CIty take on Liverpool in the Community Shield on Sunday, before opening their Premier League campaign against West Ham next weekend.