The Spaniard has hit the ground running in the new season, scoring a brace in the 3-0 World Cup qualifier victory over Italy while on international duty.
Perez has been impressed by the 25-year-old’s development since signing from Malaga in 2013 and is pleased to see him extending his stay at the Santiago Bernabeu with his current deal set to expire in 2018.
“Isco arrived here when he was very young and all he has done is improve,” Perez told Cadena SER. “He is currently playing as we believed he would turn out.
“We will be announcing his contract renewal in the coming days, a renewal which is a done deal.”