Daniel Levy has apparently accepted that Bale is determined to move to Madrid and is willing to countenance selling the Welshman for a world record fee.
However he wants to get one over on Manchester United by prising former star Modric in return for Bale.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.