AC Milan are monitoring Real Madrid's pursuit of Tottenham midfielder Luka Modric. Mediaset says Milan are preparing a bid for Real midfielder Sami Khedira, who could be squeezed out of the first team by Modric's arrival.

The Rossoneri are ready with a €10 million bid, but everything will depend on Real signing Modric.

Khedira has been frustrated at Real over his limited defensive role under coach Jose Mourinho.