Modric's certainty is still unclear but it is likely that he will leave the Madrid squad even though his fate will be where we still cannot predict it because there is no situation that can really be ascertained that Modric's next destination after he leaves Madrid.
However, it will not be a big problem because Ancelotti's rotation in the last 2 seasons has functioned to keep the squad good despite Modric's departure.
In the end, it will have an impact because Modric is one of the cogs of Madrid's attack but on the other hand, they can be fine and I am sure of that because Madrid's young players are currently very good in terms of play and they can be relied on to support the midfield to be even better. Jude's position could be flexible but I think the trio of Camavinga, Tchouameni and Valverde is still a very good option.
Previously we have heard Toni Kroos has received a new contract offer for 1 year from Madrid, but somehow Modric actually did not get the same offer at this time, despite their old age but still Kroos and Modric are a midfielder duo who are quite strong and creative so far in Madrid, but indeed the loyalty of the two players does not always get a good reception from the club as is the case with Modric now.
Reportedly Madrid wants to extend Modric's contract for another 1 season, but on the condition that he must retire from the Croatian national team at this time, Madrid reason is because with his current age will certainly make him vulnerable to injury and fatigue when playing for the team, besides that Modric also rejected the offer to become a coaching staff and prefers to continue playing football even in Saudi Arabia or America.
I think with Belingham, Valverde, Ceballos, Camavinga, Tchouameni in the middle of the middle maybe Modric is no longer needed by Madrid at this time as a player, besides that reportedly Madrid is also eyeing Nicolo Barella from Intermilan to be plotted as a replacement for Modric, currently there are several clubs that want to sign Modric namely Arab club AL Hillal and also MLS club Inter Miami and I think at his age who is currently playing in competitions that are not competitive is solution for him.