Spurs made an opening offer worth an initial £12million last week but Palace rejected the bid and were adamant Zaha is not for sale.
It is understood Spurs will not be going back in for the 23-year-old and have now moved on to other targets. It was reported earlier on Tuesday that the Eagles were refusing to accept anything less than £25million for the winger having sold Yannick Bolasie to Everton for a similar fee earlier in the window.
Instead, Marseille winger Georges-Kevin Nkoudou is expected finally to complete his £11million switch to White Hart Lane after agreeing personal terms last month.
Nkoudou has even been training at Hotspur Way while the two clubs finalise details of the transfer, which has been held up by a change of presidency at Marseille. Spurs forward Clinton Njie is likely to move on loan in the opposite direction.
Tottenham manager Mauricio Pochettino wants to bring in another attacking midfielder as well as Nkoudou, however, and is wary of being left short after the recent sales of Nacer Chadli, Nabil Bentaleb and Ryan Mason.
Newcastle’s Moussa Sissoko is one option being considered but Spurs want Newcastle to lower their £35million asking price.
Zaha was viewed as more in tune with the club’s transfer policy of buying players under 25 but Palace have made it clear they will not entertain offers so late in the transfer window.
The forward even held a meeting with Alan Pardew at the club’s training ground last Thursday and told the Eagles boss he wanted to join Pochettino’s side.
But Palace chairman Steve Parish described Tottenham’s approach as “ridiculous” and Zaha has since been informed he will be staying put.