Real Madrid Transfer News: Latest on Luka Modric's Contract, Exit Rumours

Luka Modric will reportedly sign a new contract with Real Madrid in a move that would end any speculation of a transfer to Inter Milan.

Both Marca's Jose Felix Diaz and AS' Tomas Roncero reported the Croatia international has already agreed to terms that will put him on equal terms with Sergio Ramos, who is one of the highest earners at the club. The two Madrid-based newspapers are known for their close ties to Los Blancos.

Francisco Seco/Associated Press

Modric has been heavily linked with Inter since the end of the 2018 FIFA World Cup in Russia, and Gianluca Di Marzio of Sky Sport Italia (h/t Football Italia) reported a meeting with club president Florentino Perez to discuss his future was scheduled to take place on Friday, August 10.

While a move to Italy may have seemed unlikely just a few months ago, the departures of Zinedine Zidane and Cristiano Ronaldo suggested otherwise. Real are a club in transition, and Perez appears to have embraced that.

Inter have a strong Croatian contingency, and they didn't make a secret of their desire to reunite with Modric this summer:

As reported by Marca's David G. Medina, manager Julen Lopetegui said Real had no intention of parting with Modric, but in the same interview, he also stated Mateo Kovacic would not leave Madrid. The latter's season-long loan to Chelsea became official just days later.

With speculation mounting, Modric has kept quiet, feeding the belief his desire was to move to Italy. He took to social media on Friday, however, posting this photo of himself training with Los Blancos:

He wouldn't be the first player to leverage transfer speculation into an improved contract, although both Marca and AS don't suggest that is the case here. Instead, it would appear the former Tottenham Hotspur man looked at both options and decided a prolonged stay in the Spanish capital was best.

The 32-year-old has been with Real since 2012, and after a shaky start in La Liga, he has developed into one of the club's most pivotal players. Playing alongside Toni Kroos and Casemiro, he was a crucial part of the side that won three consecutive UEFA Champions League titles, and his form in the World Cup shows he's still at the top of his game.

Speculation is likely to continue until the player addresses the situation, and even then, the papers might not go quiet until he signs a new deal or the Serie A transfer deadline passes. Italian clubs can add players until August 17.