The 22-year-old Hoffenheim defender, who can play either full-back position, has just a year left on his deal with the Bundesliga club.
And according to Portuguese newspaper Record Sport, Spurs are set to beat Benfica to the highly-rated youngster.
The Eagles are said to have given up the chase for Toljan, knowing they can’t compete financially with Spurs.
Toljan, who made his debut for Hoffenheim aged 18 in 2013, is tipped as a future star for the German national team.
He has been capped at every level from Under-17 to U21 – helping that side win the U21 Euros last month.