The Croatian midfield star has become exasperated by the Spanish giants failure to negotiate a deal with Tottenham.
His camp set a deadline of July 17 for Real to agree a deal in principle or he will explore other options.
Reports in Spain claim Madrid must sell to raise the £35million needed to buy Modric, 26, who is reluctant to put in a written transfer request while Real continue to drag their feet.
Tottenham have refused to even negotiate let alone consider the option of a player-exchange.
And the recent arrival of Andre Villas-Boas as their new boss has made Spurs even more determined to keep Modric, who is under contract until 2016.
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