Bale's future has been shrouded in doubt following his brittle relationship with coach Zinedine Zidane, who appeared to be pushing him towards the exit door in the summer.
A failed move to China resulted in the Welshman staying at the Bernabeu and he appeared to have won over Zidane when fighting his way back into the side with some good performances.
However, tensions were reignited when Bale was snubbed for the recent Champions League encounter against Club Brugge.
That led to reports that Bale had had enough and definitely wanted out of the club in January.
Modric is hoping that is not the case as he believes the 30-year-old is a very important player for Real and will be needed this season and beyond.
"Of course. I think he is an amazing player and very important for the team," said Modric. "He is showing that this season. Hopefully he will stay this season and the next seasons as well."
Meanwhile, Real's Champions League hopes are in danger after a defeat to Paris Saint-Germain was followed up by the 2-2 draw with Brugge.
However, Modric remains upbeat and says they have what it takes to turn it around and progress once the tournament resumes.
"We are good enough to overcome this bad start and qualify for the next round," said Modric. "It's still the beginning of the competition but we have a few more games left."