Modric snubs Chelsea and City

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His ultimate destination looks likely to be Barcelona after Chelsea and Manchester City balked at the £18million demanded by Zagreb president Zdravko Mamic.

Although City are likely to sign two more players in the window along with onloan Mexican Nery Castillo, their total expenditure will not exceed the £11m they offered for Modric.

Chelsea would not go above £14m, with Roman Abramovich also waiting to see what happens with Daniel Alves and Nicolas Anelka.

Modric knows Barcelona are likely to come in for him in the summer to replace Deco, while Arsenal boss Arsene Wenger is also interested.