The People says Forlan has fallen out with Atletico Madrid boss Quique Sanchez Flores - opening the door for a sensational return to England in the summer.
Spurs have been interested in signing Uruguay's World Cup star for the past 18 months and will head the queue, but there is also surprise interest from his old club Manchester United, where Forlan, 31, was a £7million flop.
The poor relationship with manager Flores means Atletico are ready to cash in on him and will entertain offers of around £9m.
Spurs boss Harry Redknapp is looking into all sorts of forward options and has been alerted to Forlan's availability.
The Uruguayan was linked strongly with a move to White Hart Lane in the January transfer window.