Paris Saint-Germain director, Leonardo, has confirmed talks over Neymar's exit from the club, Goal reports.
However, he denied that the Ligue 1 champions, have agreed any deal with either Barcelona or Real Madrid.
Neymar has been heavily linked with a return to Spain after only two seasons with PSG.
Barca are keen on taking him back to Camp Nou, but they need to offload Philippe Coutinho first.
Their LaLiga rivals are also ready to offer Modric and cash for the 27-year-old.
"Talks are more advanced than before, but no agreement.
"We will see what happens - everybody needs the future to be defined," Leonard told reporters, when asked for an update on Neymar's future.