Negotiations to acquire the exciting 25-year-old Belgian international are at an extremely advanced stage although Spurs' hopes of signing another attacking midfielder, Shakhtar Donetsk's Willian, have stalled after the clubs again failed to agree a fee, despite chairman Daniel Levy having flown to Ukraine for negotiations.
Spurs have also been frustrated in a fresh attempt to sign Joao Moutinho, with Porto refusing to budge on their £24m valuation of the midfielder -- who is so highly rated by Andre Villas-Boas.
As part of the £33m sale of Modric to Real Madrid, Spurs signed a commercial tie-up with the Spanish side which will include young players being loaned between the clubs and also the prospect of exhibition matches being played.
The sale of Modric has also unlocked transfer funds for Spurs, who are set to be the Premier League's busiest club before the transfer window closes on Friday night.
Although Spurs gave up on trying to sign Moutinho -- in public at least -- Villas-Boas has remained hopeful that a deal could still be struck for the midfielder who was so vital to him when he was Porto coach and who he tried to take to Chelsea with him.
The signing of Dembele will end a year-long pursuit by Spurs for the player who has made a significant impact on the Premier League -- since he was signed by then manager Mark Hughes for Fulham in 2010 for just £3.2m from AZ Alkmaar -- and who has also attracted strong interest from Manchester United.
Spurs have also agreed a fee for goalkeeper Hugo Lloris but only after his club, Lyon, reduced their demands for the France captain because they want him to leave. Lyon will now accept £12m for Lloris and, although personal terms are yet to be agreed, the deal is expected to go ahead.
Lloris's arrival will prompt Spurs to seek a buyer for Heurelho Gomes who has failed to convince Villas-Boas that he can challenge Brad Friedel as the club's first-choice goalkeeper. Spurs have, alternatively, been considering a bid for Birmingham City's young goalkeeper Jack Butland who recently made his debut for England and is available for around £8m. (© Daily Telegraph, London)