Modric's goal was spectacular. Maybe one of the best goals of the season... This guy is 39 years old man. He can still score with power shots. 
I'm writing it down here. I think he is staying for another year. For now his contract runs out by the end of the season. But he is still enjoying his time at Real Madrid no matter he is a backup player from now on. As long as he makes an impact, I think Real Madrid would also see no problem on keeping him longer. His salary is also not one of the highest ones in the squad either. So I don't see any issue.
By the way they are still at the same points with Barcelona in the standings but following them behind. Those recent point losses caused them to lose their advantage.
I'm writing it down here. I think he is staying for another year. For now his contract runs out by the end of the season. But he is still enjoying his time at Real Madrid no matter he is a backup player from now on. As long as he makes an impact, I think Real Madrid would also see no problem on keeping him longer. His salary is also not one of the highest ones in the squad either. So I don't see any issue.
By the way they are still at the same points with Barcelona in the standings but following them behind. Those recent point losses caused them to lose their advantage.