Modric was named the best player at the 2018 FIFA World Cup as Croatia reached the final, where they eventually lost to France.
Modric also recently picked up the UEFA Player of the Season accolade ahead of Cristiano Ronaldo and Mohamed Salah, and Rakitic feels his international teammate deserves the Ballon d'Or.
"Luka is now La Liga's big gun, he is the best player in the world this year and we Croats are very proud of him," Rakitic told Novi list.
"I wish that he wins the last prize that is left for him to win [the Ballon d'Or] because he absolutely deserves it.
"Those that are jealous of Luka, let them die in their jealousy. I am proud of him and as happy as if I was winning those awards."