The 26-year-old is expected to leave White Hart Lane this summer, with a move to Spanish champions Real Madrid a real possibility.

Spurs chairman Daniel Levy will reportedly allow the talented playmaker to leave north London should he recieve an offer of £35 million, with mega-rich PSG rumoured to be lining up a bid.

Backed by Qatari owners, Ancelotti knows that he is one of only a few managers who could afford to meet Modric's valuation, but admitted that it would be naive of him to discuss a possible move for the player.

"I am sorry to disappoint you but I can't speak publicly about the transfer market," he told AS.

"You have to understand that it would be foolish of me to speak openly about our objectives and movements in relation to quality players."

However, that did not stop the former Chelsea and AC Milan boss from praising Modric, stressing that the rave reviews for his performances at Euro 2012 were no surprise.

"I did not need to see him at the Euros to know how much talent he has," the Italian added. "I knew his capabilities before. Now he has confirmed his high quality for those who did not know."