The Spanish champions have made signing Modric their priority this summer but Spurs’ reported £40 million valuation has so far scuppered any hopes of a deal being struck.
It’s the second successive summer in which the 26-year-old has been heavily linked with a move away from White Hart Lane and he has openly expressed his desire to make the switch to the Santiago Bernabeu.
Chelsea and Manchester United are expected to challenge Madrid for his signature but none of the interested parties have yet to make an offer that will convince chairman Daniel Levy to sell.
And Villas-Boas expects Modric to return to squad training ahead of the new Premier League season despite him sitting out of the North London clubs’ recent tour to the United States and friendly against Watford on Saturday.
“He’s been training separately still, it’s important for Luka to feel mentally ready to come back to first-team training. It’s important because these boys (team-mates) are at a different level in terms of preparation, concentrating and commitment.
“The player has to understand that the club can’t do anything about other clubs’ offers, we have a value and an interest that we have to defend and we are waiting for if the offer is not met to re-integrate the player.”
He added on Sky Sports News: “We’ll try to solve it as soon as possible, obviously its the second time Luca has passed through this situation.
“It’s obviously difficult for him but the chairman is defending the club’s interest and value.
“The player has to understand that we want also to look at this current situation, but the fact that the offer doesn’t meet the chairman’s demands means we cannot do anything and the player is a good professional, and hopefully he will return to the team.”