Luka Modric transfer: Real Madrid close to £35m deal

Madrid: Real Madrid hope to complete a 44.4 million Euros (35m dollar) deal for Luka Modric in the next week but Tottenham are facing difficulties in lining up a replacement for the playmaker.

Talks over Modric`s departure from Spurs have stepped up this week and the Spanish giants have increased their initial €35.5m (£28m) bid as they move to land their top summer target.

The offer on the table is believed to be worth around €44.4m plus performance-related add-ons, while the possibility of a player-exchange is also being discussed.

Ricardo Carvalho, the former Chelsea defender, has been suggested as a makeweight while midfielder Nuri Sahin may yet move to White Hart Lane on a season-long loan despite rejecting the possibility of a permanent transfer.

Sahin is desperate to stay at the Bernabeu next season but is likely to find his opportunities limited, especially with Modric`s anticipated arrival, and Real Madrid coach Jose Mourinho could push the Turkish star towards the exit.

Paris Saint-Germain and Chelsea have also made contact with Tottenham chairman Daniel Levy regarding Modric but the 26-year-old is understood to have told the Londoners he has his heart set on a move to the La Liga champions.

Indeed, sources in Spain have suggested the Croat has already agreed a four-year contract worth around €152,000-a-week (£120,000) as he pursues his target of winning trophies and playing regularly in the Champions League.

All parties are confident that a deal will go through but Spurs are eager to line up a replacement before sanctioning the transfer of their star midfielder.

Joao Moutinho, the Porto playmaker, is the club’s main target after new head coach Andre Villas-Boas lost out to his former club Chelsea in the race for €28m-rated (£22m) Internacional star Oscar.

Moutinho, 25, is understood to have told Porto he wants to re-unite with Villas-Boas but the Portuguese club are refusing to drop their €38m (£30m) asking price.

Tottenham value the former Sporting star at around €25m (£20m) but hope that a compromise can be reached during talks planned in the coming days as they look to complete their transfer business before their pre-season tour of the United States.

As revealed by in May, Tottenham have long accepted Modric`s departure from the club this summer after they missed out on a place in the Champions League for the coming season.

Levy held firm to reject a £40m bid from Chelsea last season for the former Dinamo Zagreb man but assured Modric he would listen to offers this year if the team failed to attain a place in Europe`s elite competition.

Modric cost Spurs £16.5m in 2008 and selling him for £35m-plus would facilitate the club`s plans for a £70m summer spending splurge.

Spurs have already signed midfielder Gylfi Sigurdsson from Hoffenheim for €10m (£8m) and defender Jan Vertonghen from Ajax for €12m (£9.6m).

In addition to Moutinho, they are also working to bring Emmanuel Adebayor to the club for £5m from Manchester City and are preparing to offer €17m (£13.5m) for Lyon and France goalkeeper Hugo Lloris.