Villas-Boas says Modric should join Real soon
Modric has been keen to leave White Hart Lane since the end of last season, but Real's attempts to sign the star have been frustrated by Spurs chairman Daniel Levy's demands for a fee of around Â£40 million ($63.5m).
Villas-Boas is keen for the deal to be completed so he can reinvest the money in new signings, while also eliminating the distraction of the long-running transfer saga, and he could get his wish by next week.
Asked on Thursday if there was any progress in negotiations between the clubs, Villas-Boas said: "The chairman has told me the talks are ongoing.
"They are making some progress and the situation can be solved within the next couple days."
While Villas-Boas is likely to lose a key midfielder in Modric, he has been focused on bolstering his attacking options and completed the signing of Togo striker Emmanuel Adebayor from Manchester City this week.
Villas-Boas had also been linked with a bid for Internacional's Brazil striker Leandro Damiao, but the former Chelsea coach played down talk of a potential deal.
"I don't think so. With Adebayor, (Jermain) Defoe and (Harry) Kane coming through, I think I have enough options," he said.
"Damiao is obviously a fantastic player but he is not our prospect at the moment because we are closed with what we are trying to do on the striker situation."
Villas-Boas had also surprisingly allowed captain Michael Dawson to speak to QPR after the west London club had a bid accepted for the England defender.
But Dawson's move to Loftus Road now appears to be in doubt and Villas-Boas has not ruled out the possibility of the former Nottingham Forest man remaining at White Hart Lane.
"We have allowed the player to speak to QPR, but the player hasn't reached an agreement," Villas-Boas said.
"If at the end of the transfer window we ended up with Michael staying, we would be extremely happy."
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