Real Madrid need to sell Kaka to fund an improved bid for Tottenham midfielder Luka Modric.

The Sun says Tottenham chief Andre Villas-Boas said last week he wants the Modric transfer saga resolved as soon as possible.

The Spanish giants have yet to come back with an offer that matches Spurs' demand of more than £35million.

That is because boss Jose Mourinho is desperate to get Kaka, 30, off the wage bill first and recover as much as possible of the £56m they paid Milan for the Brazilian three years ago.

Mourinho has reportedly told Kaka he can leave but it seems likely that he will have to take a huge loss to pave the way for Modric.