The wantaway midfielder made the stunning admission to reporters from his homeland of Croatia after holding showdown talks with chairman Daniel Levy last week.
The 25-year-old is desperate to quit White Hart Lane this summer after Harry Redknapp's side failed to secure a Champions League place and is at the centre of a battle between the two London rivals.
Moving on: Wantaway Tottenham midfielder Luka Modric says it is his dream to join Chelsea
Modric claims Levy threatened to make him sit in the stands unless he accepted Spurs' position that he is not for sale insisting the Spurs chief's strong stance has broken an agreement the two men struck up last summer.
'I reminded the chairman of our gentleman's agreement when we were in Dubrovnik last summer and I agreed a contract extension with Tottenham,' Modric told Croatian newspaper Sportske Novosti.
'At that time, I had an open chat with Levy - that if a bigger club came in with a concrete offer, we would consider it and agree the best solution for all concerned.
'Now Levy doesn't want to talk to me and said there is no possibility that I can leave Spurs. He threatened me - he said if I didn't accept the club's stance, they would make me sit on the bench or in the stands.'
Levy held crisis talks with Modric last week and reported immediately afterwards that the player would remain at White Hart Lane, but the former Dinamo Zagreb man had a different view on the success of the discussions.
Calling the shots: Modric claims he was warned he'll rot in the stand by Spurs chairman Daniel Levy
'A lot has been published in the press about the meeting with Levy, who gave the public a twisted account of what happened, said Modric.
'I must say that I am genuinely disappointed about what Levy said to me. He didn't care about what I was telling him.
'It all only convinced me further that I was right to consider moving on to another club.
'I hope that eventually he will understand the situation and that we will reach an agreement and go our separate ways in an appropriate manner.'
Modric maintains that joining Chelsea would be a 'dream' for him, a statement that will irritate Tottenham fans further.
Under orders: Harry Redknapp is determined to hold onto Modric this summer
'There is no doubt that Chelsea want me - they sent a concrete offer to Tottenham,' he added.
'I know that the new Chelsea boss (Andre Villas-Boas) said he wants me in his team. Of course I am flattered by this interest in me - it's a club that all players dream of joining, fighting for every competition available.
'It wasn't a snap decision - I talked a long time with my family and people whose opinions I respect. I thought about it, weighed it all up, and finally decided this was the best option,' he added.
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Source: Daily Mail
Source: Daily Mail