Luka Modric set to undergo a medical as Real Madrid and Tottenham finally agree £33m deal

Luka Modric is set to undergo a medical with Real Madrid after the Spanish giants finally agreed a £33 million deal with Tottenham over the weekend.

After a summer of protracted negotiations, Spurs chairman Daniel Levy lowered his asking price as the two clubs settled on a deal worth €42 million (£33.2m) including add-ons for the playmaker.

Spurs manager Andre Villas-Boas’ priority will now be to find a direct replacement for Modric, with first choice Joao Moutinho of Porto still deemed too expensive by the London club. A move for Fulham midfielder Moussa Dembele is being considered after his man-of-the-match display against Manchester United on Saturday.

Modric, 26, agreed a contract worth £120,000-a-week with Real Madrid before Euro 2012 and the Croat has been training on his own over the summer in preparation for a move to the Bernabeu.

Modric, who cost Spurs £16.5m when he signed from Dinamo Zagreb in 2008, refused to entertain the prospect of a big-money transfer to any club other than Real Madrid, despite interest from Chelsea and Paris Saint-Germain.

And as the switched neared on Friday, Modric is understood to have said his goodbyes to staff and team-mates at Tottenham’s training base in Chigwell.