The Argentine is reportedly set for a sizeable wage increase at White Hart Lane.
The Blues are reportedly unwilling to wait until May for a response from Pochettino, who is concerned he would not be given sufficient time to build a squad at Stamford Bridge.
And the Sun adds that friends of the Argentine have revealed he will now commit his future to Spurs, believing that success can be achieved only with solid foundations in place.
Pochettino arrived at White Hart Lane two summers ago from Southampton, signing up until 2019.
It is said that while his new deal will not include an extension, it will see his wages increased by £1million to £4.5million per season.
In his 22 months at Spurs, Pochettino has transformed the club into Premier League title contenders and a win over Aston Villa on Sunday will temporarily close the gap on leaders Leicester to two points with eight games remaining.
Manchester United are also listed as suitors by the Sun, which claims they have not pursued their interest like Chelsea have.