The London Evening Standard says the Croatia international is determined to leave White Hart Lane this summer and wants to move to the Bernabeu.
Spurs are believed to want more than £40million, with reports in Croatia quoting a source close to the player who insists his move to Jose Mourinho’s side is close to being completed.
He said: “Everything has been resolved. Luka and the club Real Madrid agree on everything. There is a little more difficulty with the position of Tottenham but everything will be solved and will be resolved quickly.”