Real Madrid have taken a step back from negotiations for Tottenham midfielder Luka Modric.

The Mirror says Real president Florentino Perez is close to pulling the plug on their pursuit, having ordering a 'cooling off' period until the Spanish champions return home next week from a pre-season tour of the USA.

Perez is sticking to his guns and insisting he will not pay more than £30m, while Tottenham chairman Daniel Levy wants closer to £40m.

The two sides are miles apart and the stand-off has left Modric sweating on his future, because Spurs insiders insist Levy will not budge as the player has FOUR years left on his contract.