He is very close to becoming a Real Madrid legend. I think instead of going to the Arabian League, he should accept everything Real Madrid will ask of him and sign a contract with Real Madrid for one or two more years and jubilee at Real Madrid. In fact, it is more rational to transfer to the Arabian League and earn extra retirement bonuses, but a jubilee at Real Madrid could turn him into a legend. I think it's better for him to stay at Real Madrid because I'm more emotional than rational about these things. Besides, there are no footballers who have done that in the last years, everyone thinks that making more money is the first priority.
Even if he leaves he will still be seen as one of the legends of the Madrid midfield because indeed with what he has done and the achievements he has obtained over the past decade in Madrid it is enough to make Modric considered a legend so regardless of whether he leaves or tries to create a situation where he stays 1 more season it doesn't matter in my opinion because he is still a Legend.
Modric is now 38 years old and I think that is quite an old age for a player in Madrid and it is a new thing when Madrid continues to retain players of Modric's age because of his expertise to manage the midfield well he continues to be trusted even to an old age like this but regeneration must continue and the time is now for Modric to leave his position and seek new experiences with comfort before finally deciding to retire.
His contract expires in a couple of months and to date I have not seen any move or talk from Madrid about a short-term extension for the player.