Reportedly Madrid wants to extend Modric's contract for another 1 season, but on the condition that he must retire from the Croatian national team at this time, Madrid reason is because with his current age will certainly make him vulnerable to injury and fatigue when playing for the team, besides that Modric also rejected the offer to become a coaching staff and prefers to continue playing football even in Saudi Arabia or America.
I think with Belingham, Valverde, Ceballos, Camavinga, Tchouameni in the middle of the middle maybe Modric is no longer needed by Madrid at this time as a player, besides that reportedly Madrid is also eyeing Nicolo Barella from Intermilan to be plotted as a replacement for Modric, currently there are several clubs that want to sign Modric namely Arab club AL Hillal and also MLS club Inter Miami and I think at his age who is currently playing in competitions that are not competitive is solution for him.
Well it's really bold statement that Real Madrid didn't allow Modric to play in his national team, I don't think Modric will accept that because he never absent to play in his national team since 2006. Even Modric was grow from Real Madrid and Real Madrid is one of biggest football team, when it comes to nationally, it's a different case...