Sir Alex Ferguson has offered Spurs a £25million fee which may rise to £30m based on appearances and the midfielders success.
The Croatian will be offered a four-year deal worth a staggering £26m.
His wages are thought to be around £125,000 which will put him with the top earners at the club.
According to sources close to Modric, he has kept up to date with talks while he is with Croatia at Euro 2012 and will confirm the move on his return.
Tottenham rejected a bid from Chelsea for the midfielder last season.
Modric said he had hadn’t planned on quitting Spurs as he signed a six year deal back in May 2010.
Sir Alex signed Japanese wonder kid Shinji Kagawa this week and is interested in signing Cheick Tiote from Newcastle and Everton full back Leighton Baines but will not meet the £20m valuations of the players.
Source: The Sun