Coric is regarded as one of the brightest prospects in European football and is a reported target for many of the continent's top clubs.
In November, the 18-year-old said he wanted to leave Dinamo after a disagreement over how he was being used at the Maksimir Stadium but he has since had a change of heart.
"I am very happy that Chelsea and Real Madrid want me but I know I wouldn't play there," he told 24sata. "They would send me out on loan, perhaps to a lesser club or a lesser league.
"So I know staying is the best decision."
Coric says Dinamo have reassured him he will receive more playing time between now and the end of the season.
"I only want better treatment and they have promised me that," he added. "I know that I will play more now, be a key player and this is most important for me.
"If the fans back me, I could stay at Dinamo my whole career. This is my club."