Croatia entertain England in Zagreb on Wednesday in a World Cup qualifier that is vital for both teams with only the group winners guaranteed a place in South Africa in 2010.
Gerrard is missing after undergoing groin surgery and Modric believes Fa
bio Capello's side will struggle without the Liverpool skipper.
He added he was shocked at the exclusion of Newcastle striker Michael Owen.
He said: "Gerrard's maybe their best player and for us it's good that he won't be there.
"I was also very surprised that Michael Owen is not in the squad."
England lost to Croatia last year in the Euro 2008 qualifiers as they failed to make the summer tournament.
"Of course we can repeat what we did last time and beat England again," added the Spurs playmaker, who helped his country to a winning start in their World Cup campaign on Saturday.
"It's going to be more difficult because in our last two games we beat England and this time they will come here with great determination looking for revenge.
"But I am confident we can win again.We had some difficult games in the last two years and lots of good performances.
"We are a better team than before and will show that."
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