The Argentine is not in Antonio Conte’s plans at Tottenham and has been told he can find a new club before the transfer window slams shut.
He had a spell on loan at Villarreal last season and the Spanish side are working to bring him back, while keeping in mind their financial situation.
They are now closing in on an agreement with Tottenham for Lo Celso, according to Argentine broadcaster TyC Sports.
Villarreal still have a number of details to resolve with Tottenham, but the outlines of an agreement are taking shape.
The Argentina international would return to Villarreal on a loan deal and the agreement would contain either an option or an obligation to buy.
Lo Celso appears to have no future under Conte at Tottenham and is keen to make sure he is playing regular football over the course of this season.
The midfielder is also wanted by Italian side Fiorentina, but his preference is to join Villarreal.
