Modric completes Real move
Tottenham Hotspur are reported to have received £33m for the Croatia playmaker, who passed a medical at the Bernabeu this morning.
Modric joined Tottenham from Dinamo Zagreb for £16.5million in 2008 and was highly influential under former manager Harry Redknapp.
With Modric pulling the strings, Spurs secured two top-four finishes in the Premier League and qualified for the UEFA Champions League for the first time in 2010.
The 26-year-old attacking midfielder also impressed during their European campaign, alerting Chelsea and United who were unsuccessful in attempts to sign him.
However, Spurs' failure to qualify for this season's Champions League and the interest of Real Madrid meant his time at White Hart Lane was over.
He made 160 appearances for Spurs, scoring 17 goals, and his transfer comes alongside a new partnership between Tottenham and Real.
Modric, who was left out of Tottenham's squad for the opening two games of the season, was determined to leave White Hart Lane as soon as he heard of Real's interest.
Modric said: "I'm very happy, honoured and proud to be at the biggest and best club in the world. I'm very excited.
"I chose the Spanish league because it's one of the best leagues in the world," he said at a press conference at the Bernabeu this afternoon. And I chose Madrid because they are the best club in the world. They've won so many things, so many titles. It's amazing for me to be here."
"When I heard that Madrid noticed me, the rest lost interest. This is the best club in the world, with the best coach, the best players.
"Cristiano Ronaldo, Karim Benzema, Angel Di Maria, Gonzalo Higuain, Mesut Ozil, Xabi Alonso - I look forward to playing with them. I'm ready for anything and I've come here to win a place in the starting team.
"I know that will be hard but I believe I have the qualities needed to play here. I want to help the team win titles."
Real have endured a disappointing start to the season, securing only one point from two league games and losing the first leg of the Spanish Super Cup against Barcelona 3-2.
"I've seen all three games. It's not important how you start, but how it ends," he said. "There are still a lot of games to come in all competitions. The important thing is to finish well."
Modric will wear the number 19 shirt at the Bernabeu.