Multiple media sources confirmed that Croatian star Luka Modric is preparing to sign a new one-year contract with Italian club AC Milan, just weeks before turning forty-one.

The Croatian captain had indicated before the 2026 World Cup that he had not yet decided his next destination and that he might hang up his boots and retire, but he made a decision not only to continue playing but to keep performing at the highest level within the walls of San Siro.

Reports stated that the official signing of the new contract will extend until summer 2027, and it is likely to be finalized this week. MilanNews and transfer market specialist Fabrizio Romano confirmed that a full agreement has been reached between the two parties, with only the final touches and official signing remaining.

🚨❤️🖤 BREAKING: Luka Modrić has verbally agreed to sign new deal at AC Milan.

The Croatian legend continues and doesn’t retire with formal green light given to the club.

Modrić will sign new short term deal at Milan soon, he spoke to Rúben Amorim too. 🫱🏻‍🫲🏼 pic.twitter.com/LTCEYtac49

— Fabrizio Romano (@FabrizioRomano) July 21, 2026

Modric is expected to receive an annual salary of approximately 3.5 million euros, plus performance-related incentives and bonuses.

It is worth noting that Modric joined the Rossoneri last summer on a free transfer after a career full of achievements with Real Madrid and previous notable stints with Tottenham Hotspur and Dinamo Zagreb.

The Croatian star played 37 matches for Milan in his first season, scoring two goals and providing three assists. Despite suffering a cheekbone fracture that kept him out for several matches, he returned to the field ahead of schedule to strengthen the squad.