Spurs chairman Daniel Levy has slapped a £40m price tag on the 26-year old playmaker. However, Spanish giants Real Madrid are ready to bid nothing more than £30m.
Spurs quest to sign Atletico Madrid striker Adrian Lopez has failed. Meanwhile, Villas-Boas is preparing a bid for AS Roma striker Marco Borriello.
Tottenham are also interested in Hoffenheim misfit Ryan Babel. The former Kop flop is also linked with Newcastle and Swansea.
Dutch midfielder Rafael van der Vaart has confirmed he will be staying at White Hart Lane after talks over wage demands failed with former club Hamburg.
Spurs are in the hunt against Chelsea to land Porto star Hulk. Reports suggest that manager Villas-Boas met the Brazilian attacker while the Portuguese champions are demanding £38m for the 25-year old.
Spurs-target goalkeeper Hugo Lloris is set to stay with Lyon despite speculations that the French international would come to White Hart Lane for a fees worth £12m.
Nottingham Forest are preparing a bid for Spurs midfielder Jermaine Jenas while Emmanuel Adebayor's £6m move from Manchester City to Tottenham have stalled due to the players £100,00-a-week wage demands.
Ins: Jan Vertonghen (Ajax-£10m), Gylfi Sigurdsson (Hoffenheim-£8m)
Outs: Keith Andrews (Bolton-free), Joe Mattock (Sheffield Wednesday-free), Nicky Shorey (Reading-free), Somen Tchoyi (released), Marton Fulop (released), Paul Scharner (released)