Tottenham Hotspur plan to reward Luka Modric for his fine form in the club's best Premier League season with an improved contract, in a move that could ward off interest from Chelsea and Manchester United.

The Croatia midfielder arrived from Dynamo Zagreb in the summer of 2008 on a five-year deal and, although the transfer fee was £16.6m, his weekly wage did not put him in Tottenham's top bracket of earners.

Modric, though, has been described by his manager Harry Redknapp as the squad's one world-class talent and, in line with club policy of performance-related pay rises, the 24-year-old can look forward to a better contract in time for next season.

Daniel Levy, the Tottenham chairman, will schedule talks with Modric and his representative as soon as the player returns from a two-week holiday, which he will begin after Croatia's friendly against Estonia on Wednesday. Before that, Croatia face Wales on Sunday, although Modric is a doubt with a sore ankle.

Modric is on a high both on and off the pitch. He was instrumental in Tottenham finishing in fourth place and qualifying for the Champions League for the first time and then, 10 days ago, with the euphoria still fresh, he married his girlfriend Vanja. The couple are expecting their first child.

Modric is happy at Tottenham and with life in London, and he cannot wait to attack the Champions League with them next time out. His silky touch and vision have brought him to the attention of Chelsea and United but he wants to stay put at White Hart Lane.