The Croatia midfielder played alongside Bale during his time at Spurs and witnessed up close his development into one of the world's most sought after footballers.
The Welshman's impressive 2012/13 campaign has seen him linked with Carlo Ancelotti's side for much of the summer, with some reports even suggesting they could smash the €80 million barrier to win his signature.
|40/1||Gareth Bale is 40/1 with Bet365 to join Monaco
He told the club's official website: "My relationship is very good with Bale, but do not talk about players who are not in the squad. Just say he's a great player."
Modric, 27, joined Madrid last summer but endured a frustrating debut campaign at the club, scoring just four goals in 46 appearances in all competitions.
And with his first year in Spain under his belt, the former Dinamo Zagreb man has targeted success in Europe as his primary goal this term.
He added: "My challenge is to win titles with Real Madrid. I've been here a year and I have more experience. Real Madrid is the team in which the pressure is bigger but I hope we have a better season than last, because our challenge is to win titles.
"If I can choose, I want to win the Champions League, but the league is also important for us and I would like to win both titles. It's a long season and we have to prepare well. We want to start well in both competitions."
Madrid take on Paris Saint-Germain in Sweden on Sunday before taking part in the Guiness International Champions Cup in America.