Manchester City are watching Real Madrid midfielder Luka Modric's contract situation.

El Nacional says City manager Pep Guardiola would welcome bringing the former Tottenham star back to England for a career swansong.

Modric has a deal to the end of this season and could be tempted by the chance to play for Guardiola in the final years of his career.

Now 36, City have plans to offer Modric a package which would include the prospect of eventually moving to the USA and playing for MLS partners New York City FC.

Modric attracted enquiries from DC United last summer.