Real Madrid will be looking to take inspiration from Spain's success at Euro 2012 and return to what they see as their rightful place as kings of Europe next season. After claiming the La Liga crown last season, Jose Mourinho appears to have identified Luka Modric as one of the men to taken them to that next level. With his current club Tottenham failing to qualify for the Champions league, Modric has expressed his desire to compete with the best in Europe.

According to Guillem Balague in Spanish publication AS, Real's move for the Croatian playmaker has encountered problems with midfielder Nuri Shain unwilling to move the other way in part exchange. But with Tottenham reportedly not eager to sell Modric to Premier League suitors Manchester United and Chelsea, Real still remain in the hunt.

Unsurprisingly given his form at Euro 2012, Spanish international David Silva is also reportedly on Real's radar. However, mega-rich Manchester City will be under no pressure to sell one of their star performers. The Daily Mirror reports that City have placed a price tag on Silva equal to the record transfer fee Real paid Manchester United for Cristiano Ronaldo.

The story later claims that the budget given to Mourinho for the 26-year old Spanish International star is only £45 million, so a move to the Bernabeu seems unlikely. The diminutive creative midfielder would be a welcome addition to any squad, though, like Moric, there will be questions as to how he would fit into Real's starting lineup.

Some space in Real's squad could be opened up if big-spending Chinese club Guangzhou Evergrande follow through with their interest in Brazilian Kaka this summer.

The 30 year old has struggled establish himself at Real after an early injury following his move from Milan in 2009. And, according to ESPN Star Sports, the attacking midfielder may be tempted by what is sure to be a huge payday. The report states that Guangzhou are willing to offer €25 million to Real.