Isco, 25, joined the Madrid giants from Malaga in 2013 and starred for the club during Gareth Bale's absence due to injury during last season's run to the Champions League and La Liga titles.

The Spain international, whose stellar play continued after Bale's return late in the season and into the new campaign for both club and country, has given manager Zinedine Zidane a selection dilemma, with many Bernabeu faithful calling for Isco to be a regular starter ahead of the former Tottenham striker.

Perez told Cadena Ser: "Isco arrived here when he was very young and all he has done is improve. 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.

"[As for Bale], he is one of the best players we have and we are very pleased with him.

"There were no offers for him and what [Jose] Mourinho said about him was just said in a complimentary way.

"Every player is transferable right now and we'll see what happens in a year, although I don't know what'll happen next year, just as nobody does."

Perez was also asked about speculation earlier in the summer surrounding Cristiano Ronaldo, whose tax troubles with the Spanish government led to suggestions by some that the Portugal star might seek a move away from Real Madrid.

But the Real president knocked back any talk about Ronaldo -- who maintains his innocence after being accused of defrauding Spain's tax office of €14.7 million in unpaid taxes -- wanting to leave Los Blancos.

"I don't know what went on with Cristiano Ronaldo," Perez explained."There was some report that came out from [Portuguese newspaper] A Bola.

"Given that there wasn't much to talk about over the summer, they overstepped the mark.

"He was upset about the tax issue, but no news of him wanting to leave reached me, as he said he was very happy here. It was all forgotten and he went on holiday.

"In Monaco, he made things clear, saying that he is happy at Real Madrid and he will play in the Champions League on Wednesday, so there's nothing more to do than see how excited he is to start [the season]."