Villas-Boas held his first press conference as Tottenham manager on Tuesday and was questioned about the future of a player who is reportedly keen to leave for a bigger club this summer.
Real Madrid, Paris Saint-Germain, Chelsea and Manchester United are all believed to be keen on the Croatia international and though Tottenham have previously been stubborn in their refusal to sell Modric, Villas-Boas says the player could leave before the close of the transfer window.
"The interest that we have from various different clubs shows the importance of the player and what he's done for Tottenham," said Villas-Boas.
"Ongoing discussions will continue with these clubs until we reach an agreement which is acceptable for each party."
Portugal international Joao Moutinho has been mentioned as a likely replacement for Modric and the Spurs boss said he is interested in the midfielder, who helped Porto secure the treble in 2010-11 under Villas-Boas.
"He was one of the most important players at Euro 2012, he had a fantastic tournament, and also he's an important player for Porto," he said. "Counting on players of this quality will always be interesting for us.
"It doesn't mean that it's the only target, but if something happened of course he's a player we look on with some interest."
While Villas-Boas did rule out a possible move for Andy Carroll - saying "no, no, no" when asked if he would like to bring the Liverpool striker to Spurs - he did admit the club are hoping to sign Emmanuel Adebayor, who is reported to be available for as little as £5 million after impressing on loan last season.
"Adebayor is another player who was important last season and it will be a lie if I say we are not looking for a striker and Ade is part of that list."
Villas-Boas insists his motivation in taking the Tottenham job is to fight for silverware, and not to improve his own reputation having been sacked by Chelsea in March.
"It is not a mission of restoring reputation," Villas-Boas told reporters, "it is a mission to get Tottenham back on track with titles.
"We have to continue with the quality work Harry left us. We’ll have to try to build from that and put Tottenham on road for titles."
Villas-Boas arrived at Chelsea with an impressive reputation and Roman Abramovich was forced to pay £13 million to free him from his contract in Portugal.
Though his brief spell in charge of Chelsea was chastening - with the players resistant to his methods and the team struggling for form - Villas-Boas says it helped his development as a manager.
"For me after the Chelsea step it was important to choose somewhere I was surrounded by the right people and the right commitment," he said.
"You always learn from experience and for me the Chelsea experience was maybe not so gratifying in terms of success but it was very gratifying professionally.
"I learned a couple of things that maybe I've done wrong and I've learned in a club you have to trust the right people at the right time."