Modric, 24, played a key role as Spurs gatecrashed the top four last season to reach the qualifying stage for Europe's top club competition. After drawing the Swiss outfit, Harry Redknapp's men have been hotly tipped to reach the group phase.
Speaking to Sky Sports News, a confident Modric echoed this belief.
"I think we've had a good draw, but obviously I don't know so much about Young Boys," Modric said.
"But, they beat Fenerbahce and that is a good indicator of how good they are and it not be easy for us
"I think we are favourites and everyone expects from us to qualify and everyone wants to play in the Champions League."
The Croatia international also believed Spurs are in pole position to repeat their feats from last season.
"Our ambition is same as last year. Finish in the top four and if we can move forward, that would be great," he added.
"I think this season will be a hard season for every one. Liverpool have brought some players in and Manchester City have bought a lot of players. We have the same squad and that is good thing for us.
"We know each other more and I hope we can repeat the same season or even better."