The Daily Express reports that Chelsea look set to beat Real Madrid and Manchester United in the race to sign the midfielder.
Chelsea owner Roman Abramovich is ready to splash the cash in order to bring in a long-term replacement for Frank Lampard.
Chelsea failed with a move for Modric last summer, but are confident of signing the midfielder this time around.
Tottenham could decide to cash in on Modric, following their failure to make it into the Champions League.
