Tottenham Hotspur this morning agreed a deal to sign Luka Modric believed to be for a minimum of €20m (about £15.5m), breaking their transfer record.

The Barclays Premier League club have beaten competition from Newcastle United, Chelsea and Manchester City for the signature of the Croatia midfield player from Dynamo Zagreb. There are believed to be add-ons to take the fee to £20.5m.

Modric flew to London this morning to have a medical, discuss personal terms, and is expected to watch the match against Bolton Wanderers today. Modric has been offered a five-year contract. Newcastle offered £16m.

Modric, 22, was instrumental in helping his country to beat England 3-2 in the crucial European Championship qualifying match at Wembley in November, a defeat that led to Steve McClaren's departure as England head coach.

Modric's vision and passing have earned praise from many observers and he can play on the left side of midfield or as a playmaker behind the forwards.

Ramos's priority is to sign at least one goalkeeper, two defenders and a forward. Tottenham's first choice is Carlos Kameni, of Espanyol, but the deal has hit an unspecified sticking point. The Espanyol player can be bought for €6m (about £4.7m).

They have also looked at Heurelho Gomes, who has been valued at £12mby PSV Eindhoven. Tottenham have watched Maarten Stekelenburg but have doubts about the Ajax goalkeeper. Also in their sights are Diego López, the Villarreal player, and Marco Amelia, the Livorno goalkeeper who was in the Italy squad that won the World Cup in 2006.