The Spanish football website report that Modric is eyeing up a potential summer exit from the Bernabeu, with the Croatian international believing his time at the club is coming to an end.
Don Balon claim that Modric has informed international teammate Ivan Rakitic of his dilemma, with a final decision to be made after the World Cup.
It is said that Arsenal have shown interest in the 32-year-old central midfielder, but so have Tottenham, for whom Modric used to be a fan favourite during his four years at the club.
A move to Serie A is reportedly also on the cards.
Good move for Arsenal?
Modric has become one of Europe’s premier central midfielders in recent years, and would vastly improve most teams.
Arsenal are particularly in need of a dominant midfield presence, which the Croatian would provide despite his diminutive frame.
An added bonus of course would be the wrath of Spurs fans if their former star makes the move to the Gunners.
This is Futbol rating: 8/10
Likely to happen?
Modric is to make his decision after the World Cup, and you would also think it will come down to the future of Zinedine Zidane at Madrid.
If Zidane leaves then Modric is more likely to stay at Madrid, but if he stays then a move back to the Premier League is a possibility.
As reported, a move to Italy is also possible, which would actually be the move that makes most sense considering Modric’s advancing age.
This is Futbol rating: 3/10