Klinsmann, who has also called for the window to be shut prior to the start of the season, believes that the fees that are being paid are "crazy" and will cause tension within squads.
"I think that all those huge transfers, I don't know if you can justify that stuff anymore. It's kind of out of control," he told BBC Radio 5 live.
"The gap between players in a squad is getting bigger and bigger and that causes a lot of tension and problems. If you walk around with a price tag of such a transfer fee, that is not easy. People will always judge you on those amount of monies which you are not responsible for.
"Gareth is one of best in world at the moment and he wants to make this big jump to one of the biggest teams in the world. Everybody understands that but, if you talk about a £100m price tag, it is absolutely crazy."
Klinsmann, who currently manages the United States national team, scored 30 goals in 57 appearances across two spells at Spurs during the 1990s.