Modric said: "We believe in ourselves and we think we can beat any team in the world under Harry.
"We are playing well, getting results and expect to escape from the bottom of the table."
Thursday's UEFA Cup opponents Dinamo Zagreb are Modric's old team, and the 22-year-old is looking forward to playing his former side.
He said: "Dinamo are a good team, but we are better.
"If Harry asks me who is the biggest threat, I'll say striker Mario Mandzukic."