Despite reported interest from Manchester United, Modric committed himself to the Primera Liga side and he believes his decision to leave England has proved to be the right one.
"I have no doubt that the best thing that ever happened to me in football is to play in Madrid," he told Sportske Novosti.
"Where will I be in four years? Here. Besides being a great club, my family feels amazing in Madrid.
"In football it is difficult to plan, but if you ask me, I would like to retire in Madrid. With titles, of course."
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