Luka Modric is set to join AC Milan after he finishes his Club World Cup duties with Real Madrid this summer.

Reports suggest that Modric and Milan have already settled on personal terms. The deal was reportedly agreed in early June, shortly before the start of the tournament in the United States.

The Croatian playmaker will sign a one-year deal with the option of an additional year. The contract will see him earn around €3.5million per season, with performance-related bonuses included.

“I spoke to him in person and saw a guy who is really eager to be competitive. His arrival is crucial for a group that needs players like him, leadership,” said sporting director Igli Tare.

“The first question Luka asked me was: ‘Will we be a team built to win the championship?’ He has won six Champions Leagues and wants to be a star player from the start.

“He is important for what he will convey in terms of mentality, leadership and professionalism.

🚨 Confirmed: Luka Modrić will sign in as new AC Milan player after Club World Cup ❤️🖤

The verbal agreement is done and sealed with medical to follow in July, exclusive story confirmed since start of June for Luka’s future.

…and 𝐡𝐞𝐫𝐞 𝐰𝐞 𝐠𝐨, soon. 🧞‍♂️🇭🇷 pic.twitter.com/Z6PkjGgGeE

— Fabrizio Romano (@FabrizioRomano) June 25, 2025

“The fact that he is an AC Milan fan makes this story even more exciting, and it would be great for him to have a stellar season as at the end of the season is the World Cup.

Despite turning 40 in September, Modric is still in top physical condition and wants to play in next summer’s World Cup in the US.

With 13 years at Real Madrid coming to an end, he leaves the Spanish giants with an impressive haul of 28 major trophies.

Meanwhile, Milan are also close to adding a midfield partner alongside Modric.

The club has reportedly agreed personal terms with Bayer Leverkusen’s Granit Xhaka, though a final agreement with the German side over a transfer fee has yet to be reached.