Kovacic feels that he will not be able to gain regular football at Madrid due to the high-quality players at the club and is desperate to leave the Champions League holders.
The midfielder, who returned from holiday on Monday after Croatia's World Cup campaign, is now training with Madrid's Castilla side.
Luciano Spalletti has set his sights set on acquiring the Croatian midfielder, who is open to the move, according reports.
Modric will then complete a move to Inter as the Italians are ready to lodge a €35m bid on Modric, offering the midfielder a four-year contract.More news: Donald Trump claims victory for Republican Troy Balderson in tight Ohio race
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Real Madrid coach Julen Lopetegui could not avoid answering transfer related questions during his post-match press conference after Los Blancos claimed a 2-1 win over Roma on Tuesday night.
Following the departures of Zinedine Zidane and Cristiano Ronaldo from Madrid, reports have suggested other players are also keen to seek new challenges. The Wales worldwide notched a goal and an assist on the way to a man-of-the-match performance as Real move closer to their first competitive game since Cristiano Ronaldo left the club.
He'll surely be worth keeping at the club given his performances for both club and country last season. Mateo has said he wants to leave.
"Modric is not leaving Real Madrid", he said.
Will Modric stay at Real Madrid this summer? Have your say in the comments section below.