Real Madrid midfielder Luka Modric says he's happy with the progress of new contract talks.

Modric says his contract renewal is on the right track, with his current deal running until the end of the season.

"My renewal is going well, [but] I can't say more," Modric said at his Champions League presser.

"I feel very happy here and I hope to stay here next year, but I can't say more about that."

The Croatia international went on to break down the reasons behind his successful midfield partnership with Toni Kroos.

"We have been playing together for many years and I can say that he is one of the players with whom I have felt the most comfortable," declared Modric.

"I enjoy playing with him, we understand each other very well and we will see how much longer we continue to enjoy each other."