The North Londoners refused the opportunity to snap up free agent Joey Barton earlier this week because they are confident of being able to tie up a deal for 26-year-old Diarra.
The player has made it clear he would be up for a move to White Hart Lane and Spurs are confident they can complete his signing before the window closes at the end of the month.
Tottenham have dismissed, however, talk that any deal would include giving Real an option on Welsh flyer Gareth Bale.
He, along with fellow midfielders Pedro Leon and Sergio Canales were left out of Jose Mourinho's 25-man squad for Real's pre-season tour of America.
But Diarra believes he can resurrect his career again under Harry Redknapp, who has been after him for some time.
It was Redknapp who gave him regular first team football at Portsmouth three years ago after Diarra was left frustrated at Chelsea and Arsenal.
Diarra responded by inspiring Redknapp's south coast side to a shock FA Cup triumph.
He was sold to Madrid for £20million in January 2009, but has failed to settle and is now set for a return to England.
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