And should the megabucks deal for the left-sided playmaker go through, it is almost certain to spell the end for Charles N'Zogbia's St James's Park career.

Modric this week made a top-secret visit to the club's training ground with a view to a summer move to St James's Park.

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Kevin Keegan hopes to make the Dinamo Zagreb midfielder the first permanent signing of his second spell as Newcastle manager.

Modric and Zdravko Mamic, vice-chairman of Dinamo, flew to Tyneside on Tuesday for talks with club officials, including technical director (football) Dennis Wise and Tony Jimenez, and Tyneside-based agent Peter Harrison.

The 22-year-old has been tracked by top four sides Arsenal, Chelsea and Liverpool in recent seasons.

But United look to have a stolen a march by making an early move to the highly-rated 22-year-old, who is keen to seal a move away from Zagreb before he takes part in the summer's European Championships.

Keegan is yet to bring a senior player to St James's Park on a permanent deal, with defender Lamine Diatta – signed initially until the end of the season – the only incoming player since he returned.

And Modric – who started his career with Bosnian side Zrinjski Mostar – fits the bill for Keegan.

He is looking for players to light up St James's Park, and Modric – who has struck three times for his country – has long been coveted by clubs in Spain and England.

However, Modric – who started for Croatia in both of their qualifying victories over England – will not be cheap, and the reported fee would make him the most expensive player in the club's history, ahead of previous record signings Michael Owen and Alan Shearer.

And his wage demands could yet prove a stumbling block to any deal.

Meanwhile, Keegan is understood to be ready to let unsettled N'Zogbia – who has not even made the bench for the last four games – leave in the summer.