The Croatia international feels that he has already stepped up his game since arriving at the Santiago Bernabeu, and believes that his team, when in top form, are CL favourites
The 27-year-old completed a move to the Spanish capital for a fee in the region of €40 million during the summer, and Modric says he is delighted to be playing for the La Liga champions under the Portuguese tactician.
"Mourinho asks me to play as I did with Tottenham, but at a higher level," he told reporters at a press conference.
"My favourite position is as midfielder, playing with Xabi and Khedira. You can't compare it with Tottenham."
He continued: "This is the best club in the world. Santiago Bernabeu is the best stadium I have ever played in. I enjoy every minute on its pitch.
"I think everything is going well," he added, but also noted that the "Spanish League is very tough, especially away matches."
Modric also says that Los Blancos have a good chance of winning the Champions League if they can build on the performance from Saturday when they defeated Atletico Madrid 2-0.
"If we continue playing as we did against Atletico Madrid we will be favourites to win the Champions League. We must keep that passion. I feel good and I think I'm improving."
Modric added that he expects a tough game when Ajax travel to the Spanish capital on Tuesday for their CL tie.
"Ajax are a great team," he said, "and they [will] come to win and get the qualification for the Europa League."
Real Madrid will kick off against Ajax on December 4, 20.45CET.