The Premier League side reportedly nearly signed the forward during the January transfer window.
Spurs nearly signed the Frenchman - who is out of contract at the end of the season - during the January transfer window, the London Evening Standard reports, but it now appears that Mauricio Pochettino would prefer to consider other targets rather than go back in for the 19-year-old in the summer.
It is perhaps surprising that the Premier League title contenders are now willing to let Dembele move elsewhere. The starlet has been excellent for a Cottagers side that has undoubtedly been saved by the partnership the striker has formed with Ross McCormack.
The pair have contributed 35 goals in the Championship with the younger of the two scoring 14 times. Without their goals, they would undoubtedly be in for a very nervy final few weeks of the season if they hadn't have been relegated already.
And with Spurs arguably boasting little depth in terms of natural goalscorers apart from Harry Kane, it may have been a smart move for Pochettino to sign him.
However, with the attempts in January coming to nothing and with the club's success this term, the Argentinian may perhaps be looking for a striker who is more established at the highest level as he looks to build on what the team has achieved this year.