Earning his Spurs: Luke Modric will complete move in the summer

Modric must also obtain a work permit but that will be a formality given his status as one of the continent's most coveted talents.

After making his name in the Bosnian league as a teenager, Modric moved to Croatian club Inter Zapresic before joining Dinamo in 2005.

He made his debut for Croatia a year later and has gone on to win more than 20 caps for Slaven Bilic's side, including the home and away victories over England that cost them their place at Euro 2008.

His silky, two-footed passing caught the eye in both the England clashes and reports linked him with possible transfers to the likes of Manchester City, Chelsea, Arsenal and, most recently, Newcastle.

"If you had a list of the midfield players around Europe who Newcastle could possibly attract, Luka Modric would be one of them," said Keegan. "I think he would be pretty much on everyone else's list as well because he is a fantastic prospect.

"If you look at the midfield players who have a fantastic future, he would be one of them. But every other club in the league, from Arsenal and Manchester United, would like Modric."

The signing of Modric is a major coup for Spurs manager Juande Ramos and the Tottenham hierarchy, who needed to make a statement of intent after a hugely frustrating season for the north London club.

Spurs were widely tipped to break the stranglehold of the big four before the current season began - most likely at the expense of rivals Arsenal - but under former manager Martin Jol they made a disastrous start to fall way off the pace for even a Uefa Cup spot.

Since his arrival in October, Ramos has overseen a major improvement in fortunes, including a Carling Cup triumph which has guaranteed European football for next season.

Spurs' season appeared to be fizzling out disappointingly with just a single win in their last seven league games, and an overhaul of the squad was predicted for this summer. But any discontent among supporters at the team's stuttering form is sure to be alleviated by the imminent arrival of Modric, who appears certain to be one of several new arrivals at White Hart Lane over the coming months.