Modric, who was instrumental in Spurs' UEFA Champions League run to the quarter-finals last season, has recently been linked with a move to Sir Alex Ferguson's Manchester United.

However, with Tottenham missing out on a Champions League place for next season, Spurs' London rivals pounced - only to be denied by White Hart Lane officials, according to sources.

Modric joined Spurs in 2008 from Dinamo Zagreb and has starred ever since - scoring 12 goals in 119 league games for the London club.

Tottenham are desperate to hold on to their star midfielder as manager Harry Redknapp attempts to get his side back in Europe's elite competition for the 2012-13 term.

A higher bid could test Tottenham's resolve, and Chelsea are expected to raise their price for the 25-year-old.

If Modric departs in the off-season, it will leave a massive deficiency in their midfield stocks, as stated by Redknapp recently.

"If we sell Luka we are just a selling club basically," the Spurs boss said.