Manager Andre Villas-Boas is keen to sign Brazilian playmaker Willian and talks are at an advanced stage with Shakhtar Donetsk, who are hoping for as much as £20m.
An initial bid of around £12m is already understood to have been rejected, but it appeared significant that Willian was omitted from Shakhtar's league game against Karpaty Lviv last Sunday, with coach Mircea Lucescu suggesting that the 24-year-old was not in the right frame of mind.
In the meantime, Tottenham are continuing to line up other options, including Fulham's Moussa Dembele, with David Bentley or Jermaine Jenas potential makeweights in a deal that could be worth around £15m.
Lyon president Jean-Michel Aulas said yesterday that the situation was now in the hands of Lloris, suggesting that there was agreement with Tottenham on a £12m fee. The sticking point, however, could be Lloris' desire for Champions League football.
"The sale of Modric from Tottenham to Madrid is important, as is the amount of the transfer," said Aulas. It's true that on Sunday we had a lot of contact with (Tottenham chairman) Daniel Levy. Things progressed during these talks, both qualitatively and quantitatively, but nothing's concrete yet.
"I've informed Hugo of these discussions. We'll have to be a bit patient to find out. The decision belongs to Hugo, who, I think, will be approached by Tottenham very soon. The clubs' positions have moved closer together."
Tottenham are also continuing to monitor their central midfield options, with Rennes' Yann M'Vila still on the list of potential targets. According to Rennes, Tottenham have made one bid -- understood to be around £12m -- but there has been no further progress in negotiations.
Rennes are willing to sell M'Vila but they would expect an offer in excess of £15m.
Villas-Boas would ideally like another more creative central midfielder but, with Scott Parker still unavailable, a renewed bid for M'Vila remains possible. Joao Moutinho had been Villas-Boas' preferred choice but Porto's asking price is well beyond what Tottenham would be willing to pay.
Dzagoev's agent and father claimed that there had been an offer from Tottenham earlier in the transfer window and it is understood that there has been renewed interest over the past week.
The problem for Tottenham, however, would be the asking price from CSKA Moscow for their 22-year-old of around £20m.
Adding another forward is also regarded as less of a priority than reinforcing the midfield, with Villas-Boas minded to start the season with Emmanuel Adebayor, Jermain Defoe and Harry Kane as his three options. An inquiry for Leandro Damiao has also stalled over the cost of the deal.
While Tottenham clearly do not expect to secure all of their potential targets, club sources are expecting a "busy" conclusion to the summer transfer window and two or three new signings.
Levy is renowned for his late deals and, with just four days until the summer window shuts, it is a familiar strategy for him to have so many "irons in the fire".
Villas-Boas has repeatedly stressed that he does not want to implement dramatic changes and it is the signings of Willian and Lloris that appear most attainable.
Players are also still likely to leave, although Michael Dawson has turned down the chance of moving to Queens Park Rangers and Tom Huddlestone's prospective move to Stoke City has stalled. Tottenham's desire to keep Rafael van der Vaart could also be tested by a late bid from Hamburg.
After completing his medical yesterday Modric (left), who has signed a five-year deal, said: "When I heard Madrid noticed me, the rest lost interest. This is the best club in the world, with the best coach, the best players.
"Cristiano Ronaldo, Karim Benzema, Angel di Maria, Gonzalo Higuain, Mesut Ozil, Xabi Alonso -- I look forward to playing with them." (© Daily Telegraph, London)