
The 32-year-old helped Real Madrid win the Champions League for a third consecutive year and then led Croatia to the World Cup final.
Ronaldo, who was his Real Madrid teammate last season and has now joined Juventus was second, with Liverpool and Egypt forward Salah third.
French World Cup winner Antoine Griezmann of Atlético Madrid was fourth, followed by Messi of Barcelona and Argentina.
Modrić is only the third player other than Ronaldo and Messi to win the award since it was introduced in 2011.
UEFA said the award recognises the best players who play for a European club regardless of nationality. Players are judged on their performances in domestic, continental, and international competitions.