According to Mirror Football, Modric is "fully prepared" to hand in another transfer request to leave White Hart Lane, and he has no shortage of suitors. The 26-year-old watched his preferred club in West London sign Juan Mata instead, and then Mata and the club hoisted both the Champions League trophy and the FA Cup this campaign.
Tottenham, meanwhile, hoisted no trophies.
Both Manchester clubs are interesting options, and it wouldn't be surprising at all if the La Liga champions made a strong push for him as well, but the Champions League champions from West London need to be the first to act.
With Didier Drogba on his way out and Frank Lampard getting up there in age, adding another talented playmaker in the midfield is crucial. Drogba is likely to be replaced by Fernando Torres and/or Romelu Lukaku, and the Blues love to play with only one striker up top.
Where will Modric sign (assuming he leaves)?
This leaves them, depending on what formation they're in, with the likes of Lampard, Mata, Ramires and Florent Malouda as other attacking options in the midfield (possibly Daniel Sturridge as well).
Basically, there is still a great need for Modric in this side.
The Mirror reports he'll wait until after Euro 2012 competition, where he and his Croatian side will compete in Group C with Spain, Italy and Ireland, to make a decision.
The Blues must monitor the situation carefully and, when the time comes, pursue him as heavily as possible.