Modric joined Milan on a one-year contract that included an option for a further 12 months. That option is no longer active, meaning any continuation would require a new deal between the midfielder and the club.
Milan remain a possible destination despite finishing fifth in Serie A in 2025-26 and missing out on Champions League football. The report says Modric is assessing his next step after Croatia’s World Cup elimination, while suggestions of a summer departure had previously increased uncertainty around his future.
A return to Real Madrid has also been mentioned, but in a potential coaching or directorship capacity rather than as a playing move. Modric’s long association with Madrid makes that route logical, though it remains unconfirmed.
Milan’s sporting structure has changed significantly since the end of the season. Massimiliano Allegri left as head coach, while sporting director Igli Tare, technical director Geoffrey Moncada and chief executive Giorgio Furlani also departed.
Those changes create a less predictable environment for senior players. Modric’s experience remains valuable, but Milan’s fifth-place finish and absence from Europe’s premier club competition could influence the club’s squad planning and his own decision.
For Modric, staying would offer continuity at a club already familiar with his role. A move into Real Madrid’s structure would represent a different phase of his career.
Milan and Modric would need to negotiate a completely new agreement. Until that happens, he remains without a club contract and cannot be described as a confirmed Rossoneri player for 2026-27.
The immediate signals point towards Milan being considered seriously, but the situation remains open. Any announcement of a renewal or a formal move into a non-playing role at Real Madrid would settle the next stage of Modric’s career.