Martin Petrov is a wanted player at Manchester City.
City boss Mark Hughes is pleased with the Bulgaria international's form since returning to full fitness this season.
The News of the World says Petrov is to be offered a new deal.
Spurs were hopeful of luring the Bulgarian away from Eastlands, but Hughes is keen to retain him and a two-year extension is now expected to be signed in early January.
Petrov has made no secret of his frustrations at a lack of starts this term.
But there has now been an easing of relations between Hughes and the player.