With Robbie Keane sealing a move to Los Angeles Galaxy this month and Peter Crouch subject of an offer from Stoke City, Damiao is seen by Spurs boss Harry Redknapp as an ideal replacement.
Following the 5-1 home defeat to Manchester City on Sunday, Redknapp is actively looking to improve his squad so they can challenge for the Champions League spots.
Spurs bid £12 million for the striker earlier in the transfer window, but it was rejected. They are now weighing up a £16.5 million offer, an offer which Inter are expected to accept.
Spurs are likely to face competition from a number of European clubs such as Benfica and PSG with Damiao currently one of the hottest properties in Brazilian football.
The Brazilian forward was rewarded with a new five-year deal at the club in June after firmly establishing himself as a fans favourite last season.
However, when Internacional president Giovanni Luigi was asked about a possible transfer over the weekend, he refused to rule out the transfer out.
He told Radio Gaucha: “We will see, we are going to wait. Right now, there is nothing about Damiao.
“We want him to stay, but I do not want to make a firm statement about this.”
Damiao has been named in the Brazil squad to play Ghana on September 5, and is expected to feature after scoring 34 goals in all competitions for Inter in 2011.
