Isco has been deemed worthy of 13 La Liga starts this season but has completed 90 minutes for Zinedine Zidane's side on just three occasions.
The los Blancos boss confirmed last month that he regards Isco as a squad player and the midfielder has confirmed he will consider leaving the Bernabeu in search of regular game time.
Standard Sport understands Tottenham were interested in the 24-year-old last summer and retain an interest should Isco decide to move on, but Ramos is convinced his team-mate should stay in the Spanish capital.
"We hope Isco stays," Ramos is quoted as saying by Deportes Cuatro.
"It's better to be at Madrid than to go anywhere else. Isco has to look for balance and happiness.
"He's taking everything in a calm way, putting everything that's being said to one side, and from there he can be happy and play good football," added the centre-back.
Isco's contract expires at the end of next season and this summer would represent Madrid's best chance to secure a sizeable fee for his services should the Spaniard opt against an extension.
Meanwhile, Spurs manager Mauricio Pochettino has warned potential transfer targets that talent alone is not enough to make the grade at White Hart Lane.