Real Madrid manager Carlo Ancelotti has confirmed the Santiago Bernabeu club are in negotiations with Tottenham, regarding the transfer of Gareth Bale.

The Welshman, who scored 21 goals in the Premier League last season, has been strongly linked with a move to the Bernabeu for most of this year, with speculation surrounding a possible world record transfer ebbing and flowing.

Gareth Bale

Spurs' chairman Daniel Levy appeared resolute that he would not sell his talisman, no matter what the offer. It now appears the White Hart Lane supremo has relented. This comes after sustained pressure from the Spanish capital, including a new world record bid of £85m, according to Sky Sports.

However, Ancelotti, who only joined Madrid this summer, says he has yet to speak to the Welsh international directly.

"I believe the club is in talks to find a solution and we will see what happens. It is difficult to talk about Bale because he is not a Real Madrid player at present. I have never spoken to him. I do not usually talk to players who are not from my team and it would not be fair to do so," the Italian said.

Ancelotti also stated there was no truth to speculation linking Luka Modric with a move away from Madrid this summer.

The Croatia international has been linked with a £24m move to Manchester United, who are in the market for a midfielder. Rumours have also linked Modric with a surprise return to Spurs, as makeweight in a deal for Bale. However, according to the Independent, Tottenham will reject any such offer.

"That's not true. All of the players are happy to be here with us. We have not spoken about any player leaving. It's completely false that Modric could leave. He is a very important player for us. Modric will play for Madrid this season," he stressed.

There remains talk of a player moving from Madrid to London, with speculation suggesting Argentina winger Angel di Maria or Portugal left-back Fabio Coentrao could be an option.