The 23-year-old forward has put in some impressive performances at the Olympics, attracting the attention of Spurs manager Andre Villas-Boas.
However, Luigi says that Internacional have no reason to sell the striker while he still has four years remaining on his contract.
"I think it's very hard for the transfer to happen unless Tottenham pay the €60m (£47m) buyout fee that is included in his contract," Luigi told O Jogo.
"Leandro Damiao has four more years on his contract. He is a very well-paid player and has nothing to complain about.
"And we don't need to sell. We are a rich club with an enviable structure."
Damiao has scored six goals in just four starts for Brazil at the Olympics.