Chelsea, Manchester United, and Real Madrid are all preparing to battle to sign Luka Modric - with Madrid now seen as favourites to secure the services of the Tottenham playmaker this summer.
Modric, who many expect to join either United or Madrid this summer, has confirmed he wants to play in the Champions League next season.
Although it is not believed Modric has submitted a transfer request, he has given Spurs a clear indication that he is ready to seek a move away from White Hart Lane this summer and talks with the club are scheduled to take place this week.
Chelsea - who failed with several bids for the 26-year-old this time last year, including one worth £40million - are keen, as are Paris Saint-Germain, while Manchester City have previously shown interest.
The Croatia international is believed to be Man Utd manager Sir Alex Ferguson's top summer transfer target, but widespread newspaper reports over the past few days suggested he is keen on a move to Spain.
Tottenham, however, are keen on getting one or two of Jose Mourinho's players in return as they prepare to part company with the midfielder, which could hamper a move to the Bernabeu.
But according to Spanish journalist Guillem Balague, Madrid have already "agreed financial terms and length of contract with the player."
Writing on his official website, the Sky Sports pundit also said Spurs are willing to consider a reduced fee in the region of £25 million from Los Blancos if Nuri Sahin is included in the deal.
Modric is aware, however, that joining Mourinho's side may restrict his chances of first-team football next season.
And according to Balague, he has already been assured a regular place in Ferguson's line-up should he move to Old Trafford.
Modric has not personally stated which club he would like to sign for, but his compatriot, Sporting Gijon striker Mate Bilic, last week had said: "I’m very good friends with Modric. 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."
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