Luka Modric to join Real Madrid CF in £27.5m deal

Tottenham playmaker Luka Modric, who has been linked with Manchester United and Real Madrid, is reportedly set to complete his move to the Bernabeu by the end of the week for a fee in the region of £23.6million.

Reports in Spain earlier this week had suggested Tottenham had agreed to budge on their £40m valuation of Modric.

Man Utd had been keen on signing the 26-year-old, while Chelsea had remained interested after having several bids – including one worth £40m – rejected by Tottenham last summer.

According to Sky Sports News, Spurs have agreed to sell Modric for an initial £23.6m with add-ons taking the deal up to £27.5m.

Spanish media on Wednesday afternoon reported that Modric would arrive in the Spanish capital to undergo a medical on Thursday, with the deal set to be completed shortly afterwards.

Reports earlier this month had suggested Modric had already agreed personal terms with Los Blancos and it is believed he has been offered a four-year contract.

Spurs chairman Daniel Levy had insisted Modric would not be allowed to leave White Hart Lane unless their asking price was met, but former Tottenham manager Harry Redknapp earlier this month claimed Levy told the playmaker twelve months ago that he could move to Spain during the current transfer window.

It is thought Levy has reluctantly agreed to let Modric leave at a lower price to provide new manager Andre Villas-Boas with time to bring in replacements.