Italian clubs AC Milan and Juventus have already been informed of the developments after having scouts posted at Wembley last week to watch Modric in action against England.
Chelsea boss Avram Grant sees Modric as the midfield schemer he needs to transform the team's style of play and along with checking on Modric last week, he also travelled to Skopje to watch the midfielder against Macedonia last weekend.
Nothing has been confirmed, but it's understood barring a mega offer arriving from elsewhere, Modric will join Chelsea when the market reopens in January.
