The Croatia international has been fined two weeks of wages - some $120,000 - for missing training amid speculation of a move away, with Real Madrid thought to be the favourite for the midfielder's signature.
But a statement on the club's official website read: "The club can confirm
The 26-year-old has four years left on his Spurs contract.
Modric wanted to join Chelsea last year but, while chairman Daniel Levy refused to allow him leave the club on that occasion, it is now understood he would be willing to let him leave the club for the right price.
Tottenham is looking for a fee close to $60 million, but Real's best offer at this stage is about $41 million plus add-ons.
Paris Saint-Germain is also monitoring the situation and has the spending power to match Tottenham's asking price.
English Premier League
Stoke City has confirmed that winger Jermaine Pennant has signed a new one-year deal with the club.