The former FC Porto and Chelsea boss is one of a handful of names being linked with the Madrid post as Jose Mourinho gets set to depart in the summer but he has made it clear that White Hart Lane is where he wants to be right now.
"The fact he (Mourinho) made it public that he is looking for an exit has ended up with a lot of speculation," said Villas-Boas.
"It's very flattering but I think at the moment everybody is being linked with the Real Madrid job, because there are now lots of coaches around.
"For me it is always an honour but I am completely focused. I have a contract, I was given an opportunity, and I was extremely grateful.
"It's different. At the moment I am very, very focused on trying to get another year at one club, the same club!
"When everybody signs a contract you are expected to do it until the end."