Spurs are prepared to let Lo Celso move on this summer, with boss Antonio Conte preferring other options.
He spent the second half of last season on loan at Villarreal and impressed, causing the Yellow Submarine to want to bring him back on a permanent basis.
He also has interest from other clubs, including Italians Fiorentina, but according to Argentine broadcaster TyC Sports, Lo Celso is prioritising Villarreal.
A move to the Spanish side is not progressing however.
Villarreal need to make space on their wage bill if they are to be able to sign Lo Celso from Tottenham.
Lo Celso’s entourage have held a meeting with Fiorentina, who are keen to take him to Serie A, but no agreement has yet been found.
The midfielder, who joined Tottenham from Real Betis, initially on loan, made 22 appearances for Villarreal last term, across all competitions.
Villarreal have until 1st September to be able to put in place a deal for Lo Celso, if he waits for the Spanish side.