Saturday's 3-1 defeat to Manchester City left Spurs 20 points adrift of the top-flight champions and having let Chelsea cut the gap to fourth place to seven points.
However, ahead of the club's fixture with Brighton & Hove Albion, Alli insists that Spurs are still "heading in the right direction".
The 22-year-old told Sky Sports News: "We've been playing well this season, we've been in great form. You can see the direction the club is going in. We're definitely heading in the right direction at the minute and we are improving every year.
"We've got a great manager and a great young team that are hungry for success so it's exciting times for Tottenham."
Spurs currently need nine points from their remaining five matches to guarantee Champions League football next season.