Spurs have stated that the Croatian midfielder will be joining the Spanish champions subject to the completion of a medical, and announce a partnership agreement between the clubs
Goal.com confirmed that a fee of £33 million had been agreed between the two sides, including add-ons, and the north London club have now stated that Modric will be leaving for Spain before the end of the transfer window.
However, Spurs have also stated that the clubs will be working together with players, coaching, best practices, and commercial relationships.
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Real Madrid president Florentino Perez stated: "The strong relationship and affinity between our two clubs has resulted in the cementing of a longer-term partnership and the successful transfer of Luka Modric.
"We are delighted to welcome Luka and look forward to working closely with Tottenham in the coming years."
The club added that they wish him well for the future, after he made 160 appearances for Spurs in four seasons, scoring 17 goals.