It was suggested on Wednesday that the Turkey international would be used as a bargaining chip by the Spanish champions to sweeten any potential deal for Modric.
Madrid boss Jose Mourinho is prepared to pay £30 million plus Sahin for the Croatian international who looks certain to depart White Hart Lane in the summer.
But the 23-year-old has insisted he will remain at the Santiago Bernabeu despite making just two starts since arriving from Borussia Dortmund in a €10million deal last year.
“Since I arrived here, it has been like living a dream,” he is quoted as saying by Fichajes.
“It is one of the best clubs in the world and for this reason I do not see why I should go. I have no intention of leaving.”
Rumours are speeding that Modric will hand in a written transfer request to chairman Daniel Levy citing Tottenham’s failure to qualify for the Champions League as his reason for wanting to leave.
Spurs value the 26-year-old, who is currently on holiday following Croatia’s exit from the group stages of Euro 2012, at £40m with Manchester United and Chelsea also interested.
Levy held off strong interest from the Blues 12-months ago rejecting several bids up to £35m but will finally cash in on Modric in order to fund a summer spending spree.
He’s has moved to quickly to find a replacement with the signing of Hoffenheim midfielder Gylfi Sigurdsson said to be imminent after he snubbed Liverpool.
The Icelandic international looked odds on to sign for Swansea following his successful loan-spel last season but after Brendan Rodgers move to Anfield it seemed as if the 22-year-old would end up on Merseyside.