Real Madrid head coach Carlo Ancelotti said that Luka Modric "will make the right decision" when asked for an update on the midfielder's contract situation at Bernabeu.
The 37-year-old's deal with the Spanish and European champions is due to expire at the end of June, and it is unclear whether he will be penning a new contract with the club.
Modric has again been an important player for Los Blancos this term, featuring on 34 occasions in all competitions, contributing six goals and five assists in the process.
However, both the Croatian and Toni Kroos have faced criticism for some of their displays this term, and the latter also only has a deal until the end of the campaign.
Ancelotti was asked about Modric during his press conference to preview Sunday's La Liga clash with Real Betis, but the Italian was coy when it came to the experienced midfielder.
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"Modric will do what he has to do. He has spoken to the club and he will make the right decision. It's not a problem for him, nor for Real Madrid, nor for me," Ancelotti told reporters.
The Real Madrid head coach also slammed suggestions that Modric and Kroos slow Real Madrid's play when they are both on the field together.
"I don't think so. Of course they don't. They are players who think about what they are going to do before receiving the ball; they have that quality. They don't run, they make the ball run. Because the ball... doesn't sweat," Ancelotti added on Saturday afternoon.
Modric has scored four times and registered three assists in 22 La Liga appearances this season, but he will not be involved in Sunday's clash with Real Betis due to suspension.
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The midfielder is not believed to be considering hanging up his boots this summer, with clubs from Saudi Arabia thought to be keen on his signature.
Modric arrived at Bernabeu from Tottenham Hotspur in the summer of 2012, and he has represented the capital giants on 470 occasions, contributing 37 goals and 76 assists in the process.
Real Madrid are currently well-stocked in central midfield, with Aurelien Tchouameni, Eduardo Camavinga and Federico Valverde seen as key players both now and in the future, while Dani Ceballos is expected to sign a new contract in the near future.
However, Ancelotti's team are believed to be keen to sign a new midfielder this summer, with Borussia Dortmund's Jude Bellingham thought to be their leading target in that area of the field.
