Spurs have been heavily linked with the defender in recent weeks, with problems surrounding third-party ownership of the player stalling the reported deal.
The Lilywhites have offered a reported £17m for Musacchio, which hasn't been enough to tempt the player away from Villarreal.
Villarreal's coach Marcelino has quashed those reports of a proposed move by telling Spanish newspaper AS: "I see him staying now and for all of this to end, although I can't say for sure.
"A last minute exit would be very complicated to solve, therefore despite interest, it's difficult to see Villarreal allowing this possibility."
Musacchio has made 139 league appearances for Villarreal since moving to the Yellow Submarine in 2009.