The AC Milan midfielder, who turns 41 on Tuesday, informed head coach Slaven Bilić and Croatian Football Federation president Marijan Kustić that he remains available for the country's upcoming Nations League fixtures against Spain, England and the Czech Republic this autumn.
The decision ends any lingering doubt over an immediate international retirement following Croatia's disappointing exit to Portugal in the last 16 of the 2026 World Cup.
Bilić, who returned to the Croatia job in July after Zlatko Dalić stepped down, could barely contain his delight at the news.
"Of course, this decision of Luka's makes me extremely happy — we're all aware of what he brings to Croatia, both on and off the pitch," the head coach said.
"I'm looking forward to working with him again after 14 years, and we both share a strong ambition to keep Croatia as an elite, successful side, shoulder to shoulder with the best teams in the world."
The reference to 14 years relates back to Bilić's first spell in charge of the national team, during which he also managed Modrić at Under-21 level, before their paths diverged as the playmaker went on to become the most decorated player in Croatian football history.
Modrić has captained Croatia to the World Cup final in 2018, third place in Qatar four years later, and a Nations League final in 2023, cementing his status as the country's greatest-ever player.
Croatia's group campaign this autumn pits them against three sides of contrasting strength, with the visit of Spain likely to be the standout fixture given Modrić's decade and a half spent playing club football in the Spanish capital before his move to Milan last year.
Bilić has made clear that persuading his captain to continue was one of his first priorities on returning to the post, having stayed in regular contact with the midfielder even before his reappointment was confirmed.
With 202 caps for his country, Modrić shows little sign of matching the timeline of his former Argentina rival Messi, who confirmed his own international exit only days earlier after a trophy-laden career with the Albiceleste.