Tottenham Hotspur are reportedly set to hold further discussions over a move for Middlesbrough right-back Djed Spence.
Spence produced two goals and five assists from 45 Championship appearances in the 2021-22 season, as well as finding the back of the net against Leicester City in the FA Cup.
The defender has since returned to the Riverside Stadium, but he is seemingly set to depart this summer amid interest from both North London clubs.
Arsenal and Spurs have been tipped to do battle for the England Under-21 international, whose contract at the Riverside Stadium expires in the summer of 2024.
However, Antonio Conte's side have stolen a march on their bitter rivals in the race for Spence, but reports of a £20m deal being agreed are now thought to be wide of the mark.
The report adds that Tottenham were initially prepared to pay in excess of £10m for Spence, but Forest are holding out for a guaranteed fee of £15m, which led to a breakdown in talks the first time around.
Spence himself is said to be keen to make the move to the Tottenham Hotspur Stadium, as the Champions League contenders aim to increase the youthful English talent within their ranks.
Spence joined Middlesbrough from Fulham in the summer of 2018, and the defender has gone on to score two goals in 70 outings for the Riverside club in all tournaments.
The 21-year-old's arrival could pave the way for Emerson Royal to leave the club, with the Brazilian thought to be surplus to requirements under Conte after a tough debut season.
Tottenham have already bolstered their wing-back ranks with the signing of Ivan Perisic on a free transfer from Inter Milan, and the Croatian is one of three early signings at Spurs.
Spurs could have also been handed a boost in their efforts to bring Christian Eriksen back to the club, as the Denmark international has reportedly turned down the chance to move to Manchester United.