Paris St-Germain are considering a £40m bid for Tottenham Hotspur star Luka Modric - matching Tottenham's valuation of the midfielder.
Modric has been a long-term target for Manchester United and Chelsea, but Real Madrid were thought to have stolen a march on their rivals and were seemingly in pole position to sign the Croatian.
But, according to the Guardian, that transfer has been completed by the fact that PSG are willing to meet Tottenham's valuation of £40m, putting them ahead in the race to sign the creative midfielder.
Modric has been fined two weeks wages - roughly £80,000 - for refusing to train with the Spurs squad, as he looks to clinch a move to the La Liga champions. And the Croatian midfielder's behaviour has been widely condemned by the north London club - Spurs boss Andre Villas-Boas even branded the midfielder "unprofessional".
Modric has since apologised and returned to Spurs training, although he will not join Tottenham's pre-season tour of North America.
Andre Villas-Boas said: "He has spoken to me and to the chairman, and I think his apology comes and it's welcome, the player is now training and just hopefuly will make the right decision in the future. We're just waiting on the bidding clubs to offer the right value for the player."
Reports suggest that although Modric has given little consideration to joining the French side, their ability to meet Modric's valuation may allow Spurs to coax out a higher fee from Real Madrid.
The Spanish side have reportedly offered a package worth £31m, but Spurs insist they will reject all unsatisfactory bids and keep the wantaway star at the club if necessary.
In a similar situation last summer, Modric made it clear he wanted to leave for Chelsea, but was not allowed to depart, and went on to enjoy a successful season with Spurs.
Manchester United were thought to be in the hunt this summer, but United are thought to view Modric's valuation as too steep.
Chelsea could still come back in for the midfielder, but it appears Modric now favours a move to Madrid.
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