Real Madrid refuse to meet Luka Modric valuation

Real Madrid have reportedly refused to meet Tottenham Hotspur's £40m valuation for midfielder Luka Modric.

The Spanish club have courted Modric throughout the summer but Spurs' desire to make a large profit on their client is believed to be a stumbling block in negotiations.

Madrid are only willing to play £30m for the Croatian, according to the Daily Express, and will not meet Spurs' demands.

Tottenham manager Andre Villas-Boas recently said: "This can be resolved in one of two ways. One is that the teams pay what Tottenham is asking and the other is that the player continues with us next season."

Modric is also a reported target of Paris Saint-Germain.