Spanish giants Real Madrid have reportedly agreed a fee to sign Bayern Munich midfielder Thiago Alcantara.

It is said that Luka Modric has made it clear to Real Madrid and Florentino Perez that he wants to leave the Los Blancos to join Inter Milan and the Santiago Bernabeu based side is already looking for replacements for the Croatian star.

Spanish outlet Onda Cero state that Real Madrid have agreed a fee with Bayern Munich to sign Thiago, who has been linked to the club as a possible Modric replacement.