This announcement was made on his social media account as the midfielder will be leaving at the end of his contract.
According to the post, Isco said, "after 9 years I finish my journey at Real Madrid, a club that made it possible for me to realise my dreams I had when I was a child. Thank you all and hasta siempre, Hala Madrid".
Isco joined Madrid in 2013 and has gone on to score 53 goals across 352 appearances with 56 assists.
Before Madrid, Isco enjoyed a stint at Malaga coming through the Valencia youth system.
At Madrid, He won 5 Champions League titles, 4 Club World Cups, 3 UEFA Super Cups, and 3 La Liga. and 1 Copa del Rey.
He leaves as a free agent and several clubs across Europe will be vying for his signature.