The Rossoneri had been hoping to take the current holder of the Ballon d’Or to San Siro over the summer.
They had been given hope by Modric, with the 33-year-old making no secret of his fondness for the Serie A side.
In the end, though, no deal could be discussed as a proven performer at the very highest level feels that he has wrongs to right at the Santiago Bernabeu.
Boban told Sky Sport Italia on the protracted Modric saga: “He is a big Milan fan, and has been ever since he was a child, so he had the passion to join us.
“However, we never got into concrete talks, he didn't want to leave Real after a bad season.”
While Milan were unable to prise Modric from Madrid, they did lure his countryman Ante Rebic away from Eintracht Frankfurt on a two-year loan which includes a €25 million (£23m /$27m) purchase option.
Bobac said of the 25-year-old forward: “He has so much character and strength.
“In addition, he knows how to play in different roles. He can be deployed on both flanks or elsewhere.
“We are happy that he is with us because he is a serious boy, who has grown technically in recent years.”
Another target that slipped Milan’s net was Angel Correa, with no agreement reached with Atletico Madrid for the Argentine winger before the deadline passed.
“For Correa, we didn't find ourselves on the same economic basis, and that is okay,” said Boban.
“There were also other good players that we didn't sign. We have a good squad, we made good signings and we will see over time how well we did.”
While happy with the business carried out by the Rossoneri, Boban admits that he would like to see changes made to the summer transfer market.
He said: “It was a heavy window, I hope that FIFA will shorten the time.
“With the current dates, the teams and managers are stressed. Players come and go.
“Our strategy? Young players, but they have to be accompanied by experienced ones as well, perhaps it would be better to have a few more of those.”
Milan have opened their 2019-20 campaign with a win and a defeat and will return to action after the international break with a trip to Verona, before then taking in a derby date with Inter.