Mourinho has been linked with a move away from Real this week.
But Modric said: "He has a long contract with Real Madrid and I hope he stays here for a long time. I agree with what he said.
"If we play like we did against Atlético then we are the favourites to win the Champions League. That is the way to go and if we carry on like and with the passion we showed in the last match then we are the favourites."