The Daily Mail reports that Real Madrid are confident of completing the signing of the 26-year-old midfielder ahead of rivals Manchester United.

Should Modric leave Spurs it would give the new manager at White Hart Lane funds to splash in the transfer market.

Modric's former Croatia team-mate Mate Bilic claimed earlier this week that his friend is closing in on a move.

"I’m very good friends with Modric," said the Sporting Gijon striker.

"He wants to play in the Spanish league. He loves the Premier League but he wants to play in Spain. He’s very close to agreeing a move."

Champions League winners Chelsea are also reportedly keen on the midfielder.