Tottenham Hotspur playmaker appears to have taken a massive step towards the White Hart Lane exit, after it was reported that he has agreed personal terms with Real Madrid.
Reports in the Mirror claim that the Croatian midfielder has met with Real's representatives and that he is pleased the contract, with a four-year deal thought to have been offered to him.
However, the only stumbling block in any protracted deal will be the stance of Tottenham, who are yet to agree on a price for the 26 year-old.
A source told the Mirror that both Modric and Madrid hope this can be sorted quickly.
"Everything has been resolved satisfactorily.
"Luka and Madrid agree on everything. The only problem is the position of Tottenham, which has made things a little more difficult.
"But everything will be solved. And, more importantly, it will be resolved quickly."
Modric has been plotting a route out of Tottenham since last summer, when he was on the verge of joining Chelsea in a rumoured £40 million deal.
At the time Spurs boss Harry Redknapp convinced the midfielder to stay with the club one more season, as they plotted a quick return to the Champions League. However, following the club's failure to reach the competition and Redknapp's subsequent sacking, Modric has made it clear that he wants to leave.
Modric was signed by Tottenham for £16.5 million from Dinamo Zagreb in 2008, but Spurs' chairman Daniel Levy is believed to be hoping to secure around £35 million for the talented playmaker.