The Croatian playmaker has been heavily tipped to move to Spain this summer, with Andre Villas-Boas looking to capitalise on the boost to his transfer budget - starting wth a move for the French goalkeeper.
The player's father and agent Luc admits the deal is still in the offing, telling The Sun newspaper: "I'm sure that Hugo's move will be acceleerated if Modric joins Real."
Lucas Moura could become a Manchester United player within the next 48 hours, according to reports in the UK.
The Brazilian teenager, in the UK as part of the Olympic football squad, is thought to be travelling to Manchester today for a medical ahead of a £30m (Dh171m), pve from Sao Paulo.
Sir Alex Ferguson, the Manchester United manager, stayed behind in the UK yesterday as the rest of the team flew out for a pre-season fixture against Valerenga, with expectation he will complete the deal to sign the midfielder - who started yesterday's game on the bench for Brazil.
Al Dhafra have signed Senegal forward Papa Pate Diouf from Copenhagen. Read the full story here.
Arsenal are set to complete the £16m move for Santi Cazorla this week - with the Spanish midfielder set to be included in the squad travelling to Germany for a friendly next Sunday.
The Euro 2012 player is thought to be in London to finalise his transfer from crisis-struck Malaga.
Legendary Bulgarian player Hristo Stoichkov is to return to the club where he first made his name as president.
The country's most successful footballer of all time, who guided Bulgaria to the semi-finals of the 1994 World Cup, will be named CSKA Sofia's president if a planned takeover goes through, according to reports.
Stoichkov was named as coach of rival side Litex Lovech in January, but prospective new owner and MP Emil Dimitrov said the 46-year-old would take over running CSKA once the deal was completed.
CSKA - 31-times Bulgarian champions - have been hit with financial problems in recent years. They were hit with a transfer ban and forced to sack six players following their Europa League qualifier exit.