The former Manchester United striker is available on the cheap as his club wants a quick sale.
And Spurs, who are long term admirers of the Uruguayan, have been put on red alert.
On the move: Diego Forlan (right) looks set to leave Atletico Madrid this summer
Forlan, 32, has rejected a move to Turkish side Galatasaray but would love a return to the Premier League.
Tottenham boss Harry Redknapp is looking to sell Robbie Keane and possibly Roman Pavlyuchenko as he plans to revamp his strike force.
Ill-fated: Forlan had a disappointing spell Manchester United
Atletico president Enrique Cerezo said: 'Diego will decide what happens but it looks like his first choice will be England.'
Last year the asking price was ?20m after Forlan enjoyed an impressive World Cup, but that has plunged because the club want to offload him quickly.
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Source: Daily Mail
Source: Daily Mail