By ESPNSTAR.com staff
The La Liga winners have been embroiled in a season-long tug-of-war with Tottenham chairman Daniel Levy over their transfer bid for Modric. The Spurs chief has refused to budge on his 40 million Euro asking price, while Real Madrid insist they will not pay more than 30 million Euros for the Croatian.
Paris Saint-Germain presented Los Blancos' biggest competition for Modric's signature, as the French side were financially capable of meeting the price-tag slapped on the Spurs player by Levy. However, the Daily Mail reports that PSG have pulled out of the race for Modric, after obtaining Lucas Moura from Sao Paulo.
The withdrawal of the Ligue 1 side presents a major boost to Real's hopes of signing the former Dinamo Zagreb player. Los Blancos club officials are aware that Levy's bargaining power has reduced significantly now that the Spanish club are the only team taking part in serious negotiations for Modric. With the midfielder's heart set on departing White Hart Lane this summer, Real are hoping discussions with Tottenham will be concluded in the near future.
Spurs remain in negotiations with Manchester City's Emmanuel Adebayor, as manager Andres Villas-Boas cannot afford to start the new season boasting only one recognized striker in the form of Jermain Defoe. Club officials are believed to have made an approach for Internacional's Leandro Damiao, while the Portuguese boss is also keen to sign a goalkeeper, with Olympique Lyon's Hugo Lloris and Inter Milan's Julio Cesar both being considered.
The loss of Modric will also present Villas-Boas with a playmaking gap to fill, and Tottenham scouts have identified Shakhtar Donetsk star Willian as a possible replacement. The Brazilian has made no secret of his desire to secure a move to England and Spurs officials have made contact with his club, although London rivals Chelsea are also keeping tabs on the attacking midfielder.
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