Newspaper AS claims the situation is “irreversible”, with Isco no longer a first-team regular at the Bernabeu.
He is yet to start a league game since Solari replaced Julen Lopetegui in October last year.
And Isco, 26, has now found himself behind teenage sensation Vinicius Jr in the pecking order, leading to fewer opportunities – even from the bench.
Solari has apparently lost all confidence in Isco, who has reportedly gained weight during the past few months.
While the player himself is said to be deeply unhappy over his lack of minutes and is hoping for a fresh start in the summer.
Chelsea have been strongly linked with Isco, as their own playmaker Eden Hazard is reportedly on his way to Real.
And they could demand the Spaniard in any potential deal, with loanee Mateo Kovacic also a possible transfer pawn.
Should Maurizio Sarri get the opportunity to stay at Stamford Bridge this summer, he could choose to deploy Isco as either a left-winger or as one of the two central midfielders who link up with the striker.
Could Chelsea line up like this next season? Kepa; Azpilicueta, Rudiger, Christensen, Emerson; Kante, Kovacic, Isco; Pulisic, Higuain, Hudson-Odoi
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