Modric has been strongly linked with a move to the Santiago Bernabeu all summer, but the two clubs have yet to reach an agreement over a transfer fee.
"Madrid have made a good choice in trying to sign Modric," Marca quotes Rakitic as saying.
"He will be a great option if he ends up at Real Madrid. Real will be very satisfied with Luka if they sign him.
"He's the type of player who enjoys to be near the opponents' goal."
Modric, 26, joined Tottenham from Dinamo Zagreb in 2008 and has established himself as one of the most creative midfielders in Europe.