Modric, in his final appearance for Real, was a second-half substitute in Wednesday's 4-0 Club World Cup semifinal defeat to PSG.
Xabi remarked afterwards: “This is not the desired end, it's a bitter end, but he won't be remembered for today's game but for other great ones. He's a legend of world football and of Real Madrid. He'll be remembered for many more good things than for the 25 minutes he played today.”
Real goalkeeper Thibaut Courtois also said: “We're lucky to have a lot of Madridistas here. That's why it hurts us to lose to them today. Modrić always gets a standing ovation, not only from the Madridistas.
"He's a great player, a great teammate and we'll miss him.”
Modric is now on his way to AC Milan, with contract terms agreed and a medical scheduled.