Luka Modric has agreed personal terms with Real Madrid, according to the Mirror.

Tottenham always looked likely to struggle to keep hold of Modric this summer after failing to qualify for the Champions League last season, with Chelsea and Manchester United interested alongside the La Liga champions.

Spurs turned down a £40 million deal for the Croatian international, who starred at Euro 2012, from Chelsea last summer, and were hoping to secure a similar fee this time round having conceded defeat in their attempts to keep hold of him.

New manager Andre Villas-Boas has reportedly been told he can start looking for Modric’s replacement, a search he will have to step up with Modric agreeing a move in principle to the Spanish capital.

The Mirror reports that Modric has told Tottenham that he wants to move on in order to play Champions League football, and has agreed terms with Madrid.

Quoting a 'source', the Mirror says Modric is hoping to force through a deal as soon as possible.

"Everything has been resolved satisfactorily," it reads.

"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."

A fee has yet to be agreed between both clubs but Spurs chairman Daniel Levy, known as a tough negotiator, will hold out for a fee of £30 million plus, safe in the knowledge he will not be selling to a Premier League rival.

The paper reports that the deal could be wrapped up in the next week, with reports elsewhere suggesting Villas-Boas will target Porto’s Joao Moutinho, who is also on the radar of Manchester United, as a replacement.

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