The New Zealander had apparently been lined up as a priority target for Spurs, as they looked to strengthen their defensive ranks.
However, Reid is now said by the Daily Mail to be on the verge of signing a contract with West Ham, with Tottenham's interest cooling.
It seems strange that Spurs would not want a player of his quality, especially on a free transfer, but there could be a very logical reason for this.
Mauricio Pochettino has looked to the club's youth system to provide solutions to problems in Spurs' first-team since taking charge and it has worked very well so far.
Tottenham needed a goal-scorer and Harry Kane filled that void, the Lilywhites wanted a defensive midfielder and Nabil Bentaleb stepped up, and Pochettino was targeting an all action midfielder when Ryan Mason emerged.
The trio have now become a key part of Spurs' first-team and it seems that others are set to follow in their footsteps.
Carter-Vickers has been in impressive form for the club's development sides this campaign, but his progression would undoubtedly have been blocked by Reid's arrival.
With the two competing for the same position, Spurs would have had a lot of options at centre-back and Carter-Vickers would likely have had to wait considerably longer for his opportunity to play senior football.
Without the West Ham man, though, the USA Under-20 international has a realistic chance of receiving game time next campaign and that may have been behind Pochettino's thinking.
It would be a show of faith in the club's youth system, but to continue producing talent this is the sort of trust that needs to be placed in the more promising youngsters and Pochettino should be highly commended for his stance if this was behind his decision.