Four first team players are out of contract at the end of the 2022/23 campaign with the club expected to offload some big earners from their wage bill this summer.
Modric agreed a 12-month renewal at the start of 2021/22, and he wants to stay in Madrid, but a new deal is yet to be agreed with the former Tottenham star.
“We have to talk to the club about this, but we don’t have a problem”, as per reports from Marca.
“The decisions the club makes on these players in the near future, I will be in 100% agreement.”
Up next for Ancelotti’s title chasing side is a return to domestic action away at Mallorca tomorrow night.