AS says terms have been struck between the two clubs and the only delay is now due to Spurs asking for time to find a replacement for the Croat.
The Modric transfer will be settled at €32 million plus bonuses based on appearances and success. Tottenham chairman Daniel Levy's last demand was for €38 million, but he appears now to have relented.
If the deal can be pulled off, it will be a coup for Real, which has seen PSG offer €45 million for Modric - only for the player to reject the move as he wanted to join the Madrid giants.
Spurs are now actively lining up a replacement for the midfielder ahead of Levy rubberstamping his sale.