The Daily Star says they are set to make a final £30m offer for Modric and will tell Tottenham: Take it or leave it.
Chelsea are refusing to give up their chase for the Croatian play-maker, despite Spurs’ insistence Modric is not for sale.
Chelsea have already bid £22m and £27m for the 25-year-old, who has made it clear he wants to leave White Hart Lane.
Spurs chairman Daniel Levy is believed to be holding out for £35m. New Chelsea boss Andre Villas-Boas is a big fan of Modric and owner Roman Abramovich is also keen, believing he could provide the chances for £50m flop Fernando Torres.