Real Madrid are ready to up their bid for Tottenham midfielder Luka Modric.

A difference of €10 million exists between the two clubs over Modric's valuation. Spurs want €40 million, while Real refuse to go higher than €30 million.

However, a new offer could be made should Real receive an injection of cash from the proposed sale of Kaka to AC Milan - which will be discussed today in New York.