The 21-year-old Spaniard is reported to have flown in to London for a medical and could complete a season-long loan in the next 24 hours.
Falque started his professional career at Barcelona before moving to Juventus, where he has been loaned out to Bari and Villarreal B over the last two seasons.
"Iago loves big challenges and this with Spurs is very important," the player's agent and father Iago Falque Snr is quoted as saying on skysports.com.
"It will be hard, but he will fight for his place."
Falque, a Spain Under-21 international, is poised to be the third youngster to arrive at White Hart Lane this summer following the signings of former Barcelona player Cristian Ceballos and 16-year-old Souleymane Coulibaly from Siena.
Spurs are short of options in midfield thanks to injuries to the likes of Sandro, Steven Pienaar and unsettled star Luka Modric.
They have also have been strongly linked with a move for Real Madrid's Lassana Diarra, although he appeared pessimistic about his chances of a move to White Hart Lane when he told Spanish newspaper AS on Thursday morning: "There is no agreement with Tottenham and I do not think there will be.
"I have a contract with Real Madrid until 2013 and Jose Mourinho is my coach."
Source: PA
Source: PA