The Croatia international only moved to Madrid from Tottenham in a £33 million deal last summer, but he has struggled to make an impact in his short time with the Spanish champions. Modric was recently voted as the worst signing of the season in Spain in a poll conducted by Marca.
There have been increasing reports that the 27-year-old could be offloaded, with the likes of Arsenal, Tottenham and Manchester United thought to be interested.
Chelsea are also believed to be monitoring the situation of a player for whom they had a £40 million bid rejected in the summer of 2011. The Daily Star reports that Chelsea’s financial might would make them the likeliest destination for Modric. The Blues also have a need for a central midfielder, with Frank Lampard set to depart the club when his contract expires in the summer.
There is unlikely to be any movement in this month’s transfer window, but if Modric fails to improve before the end of the season then the summer may see Madrid cut their losses.
Chelsea may also be targeting Malaga attacking midfielder Isco this summer. The Sunday People has backed up reports from the London Evening Standard last week that the Blues have secured a first option to sign the highly rated 20-year-old.
The agreement is said to have been made when Chelsea allowed forward Lucas Piazon to go on-loan to Malaga until the end of the season. According to the People, Isco is valued at £19 million, although Malaga could ask for Piazon in part exchange.
Isco’s reputation has soared this season with the Spain Under-21 international particularly influential in Malaga’s impressive debut campaign in the Champions League.
If Chelsea are prepared to strengthen their defense with a move for reported target Jores Okore this month then they may well be successful. The 20-year-old center-back played against the Blues this season for Danish side Nordsjaelland, and is also believed to be drawing interest from Manchester United and Liverpool among other Premier League clubs.
The Denmark international’s agent has said that his client would be interested in a move.
"These are only rumors. Negotiations ongoing with any club? No comment,"
"Obviously, Jores would like to prove himself in more competitive leagues, but we have no hurry. It could happen in January or in the summer.
"He is an intelligent guy and a model professional. The only thing I can say for sure, is that any choice won't be made for economic reasons. We seek a project and not the money. "
Another 20-year-old is also being linked to Chelsea in Guingamp midfielder Gilbert Imbula. The Blues were thought to be in pole position to sign the player who made his debut for the Ligue 2 club when aged just 17. However, according to the Daily Mail, Premier League rivals Arsenal, as well as Ligue 1 side Lyon, are now also keen to sign Imbula.