Luka Modric’s transfer saga has taken another twist after Paris St German indicated they are prepared to meet Tottenham’s £40million asking price. The Croatia midfielder had been expected to join Real Madrid but the Spanish giants are reluctant to pay more than £31m. Modric has no desire to join PSG but Spurs are determined not to sell their star asset for less than their valuation. The end of the affair? Luka Modric (left) looks set to leave Tottenham   The 26-year-old has attempted to force through a move to Spain by refusing to join his team-mates on the club’s American tour. Modric did return to training on Monday but was fined £80,000 for his ill discipline. Manager Andre Villas-Boas branded his behaviour ‘not professional’. Madrid are keen to take advantage of the situation, hence their refusal to up their bid. They hope to force through a move despite Spurs’ chairman Daniel Levy insisting he will keep hold of Modric, whose contract runs until 2015. Assistant coach Aitor Karanka gave the clearest indication yet that Madrid want to replace Kaka with Modric this summer. Karanka told AS: ‘We decided he would stay in Madrid. Kaka and the club are working to find a good solution for all parties.’ In demand: PSG have emerged as rivals to Real Madrid to sign Modric Asked about Modric, he added: ‘Which club would not want a player like him? ‘He is an outstanding footballer and had a great tournament (Euro 2012). It is clear that he would fit in Madrid.’ PSG meanwhile have flexed their financial muscle this summer by signing Zlatan Ibrahimovic and Thiago Silva from AC Milan for a combined £52m and Napoli’s Ezequiel Lavezzi for £24m. Despite Modric not being keen on a move to the French capital, PSG’s interest could force Madrid in to a rethink.

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Luka Modric: PSG prepared to pay £40m