It is rumoured star midfielder Modric has been trying to force a Madrid exit based on a gentleman's agreement with president Florentino Perez.
The Croatian was allegedly promised he would be allowed to leave if Madrid won the UEFA Champions League a third consecutive time.
However Perez is no longer considering it after Cristiano Ronaldo's exit to Juventus under very similar conditions.
As reported by Cadena Ser, Madrid have had enough of Inter's pursuit and will report them to FIFA for 'tapping up' a player under contract.
It has been pointed out how hypocritical that would be, given how recently Madrid announced the signing of under-contract Spain coach Julen Lopetegui on the eve of the 2018 FIFA World Cup.