The legendary 40-year-old ended his 13-year spell at Real Madrid last summer, joining AC Milan as a free agent.
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Despite his age, Modric has been a key player for Max Allegri’s side, featuring in 22 of their 23 Serie A games so far this season.
According to journalist Daniele Longo, the midfielder has an option to extend his stay by a further year but is undecided.
The decision will depend entirely on Modric’s own perspective regarding his physical fitness and his ability to continue competing at the highest level.