Modric has been the subject of intense speculation over his future, with many expecting the 26-year-old to leave White Hart Lane this summer after four years at Spurs.
Chelsea and Manchester united are the two Premier League clubs most closely linked with a move for Modric, but La Liga champions Real Madrid appear to be leading the chase for the £30 million-rated midfielder.
When questioned about Modric's potential arrival while on a pre-season tour of Indonesia, Marca reported Real right-back Alvaro Arbeloa as saying: "Modric is a great player. I'm happy he could join Real Madrid. We have many good midfielders, so they have to compete for a spot."
Arbeloa's fellow Real defender, Pepe, simply added: "I know he's a good player."
Real's players talking up a potential new signing is similar to what several Barcelona players did last summer when they repeatedly spoke of how well Cesc Fabregas would fit in if he returned to his boyhood club, something which caused ire among Arsenal fans and inside the club.
In the end, the deal was completed, though relations between the two clubs have suffered as a result.