Reports in Italy claimed the Barclays Premier League side had made a ?9million bid to acquire the services of the 20-year-old forward.
White Hart Lane boss Harry Redknapp is keen to strengthen his striking department this summer and bolster his options for next term after Jermain Defoe, Roman Pavlyuchenko and Peter Crouch offered a disappointing return in front of goal last season.
Hands off, Harry: Spurs boss Redknapp has been snubbed in his bid to sign Palermo striker Abel Hernandez
When asked about Tottenham's offer, Hernandez's agent Vincenzo D'Ippolito told Italian website calciomercato.it: 'It's true.
'But for the time being I know (Palermo president Maurizio) Zamparini has turned down the offer, although I do not know what the figure was.
'If indeed it was 10m euros then it would be considered too low as the value of the player in the market is of 20m euros.
In demand: Uruguay international Hernandez is highly-rated and the striker has a number of interested suitors
'The transfer market has just started so we will see what happens.'
Hernandez joined Palermo in the summer of 2009 from Penarol and is under contract with the Serie A outfit until June 2013.
The South American scored two goals in 22 league appearances for the Sicilian outfit last season.
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?Explore more:People: Roman Pavlyuchenko, Peter Crouch, Harry Redknapp, Jermain Defoe Places: Italy
Source: Daily Mail
Source: Daily Mail