Tottenham will beat both West Ham and Sheffield Wednesday to his signature.
A deal is expected to be completed by the end of the week for the non-league whizkid, who plays for Ebbsfleet United.
Tracey had recently been on trial at Spurs, and is a central midfielder, who can also play in a more advanced role.
The Mail report Crystal Palace, West Ham, Charlton and Ipswich were all interested in Tracey.
KentOnline had reported in November that Sheffield Wednesday and Stoke City were also among the clubs monitoring his progress.
Tracey, 17, is likely to go into Tottenham's academy, potentially playing for the under-18s in the FA Youth Cup, and with the target of quickly ascending to the under-21s.
His signature could be another jewel in the crown of a club thriving thanks to the progress of young stars, led by Dele Alli, signed from MK Dons a year ago.