Spurs had been linked with a move for Cambiasso for several weeks but have decided to end their pursuit of the 33-year-old and could be set to turn all attentions to Southampton's Morgan Schneiderlin, who looks set to leave St Mary's this summer.
Cambiasso is available on a free transfer and the midfielder was linked with a move to Spurs to join fellow Argentine Mauricio Pochettino, but his age has reportedly ruled any move out.
Schneiderlin is a target of Spurs and Arsenal and The Lilywhites may be turning all attentions to signing the 24-year-old, as Pochettino remains keen to sign the midfielder he worked with at Southampton last season.
The Frenchman has revealed that he is keen to leave The Saints and will follow Rickie Lambert, Luke Shaw and Adam Lallana out of the club, with Dejan Lovren also set to be sold.
However, Southampton will demand £20 million for Schneiderlin as the North London rivals look set to go head-to-head for his signature.
Schneiderlin has previously suggested that he is keen to join Arsenal, and Arsene Wenger is an admirer of the holding midfield man, and the lure of Champions League football may give The Gunners the upper hand.
Though a move to White Hart Lane would see him reunited with Pochettino, and the new Spurs boss could influence any decision.
There is already plenty of competition in the Spurs midfield with Sandro, Paulinho, Etienne Capoue, Moussa Dembele and Nabil Bentaleb all vying for a starting role in the middle of the park.
If the club were to bring in Schneiderlin, at least one of the current midfielders would surely have to be sold.