The 24-year-old Argentine forward is currently plying his trade at the San Siro with Inter Milan, but is keen to secure a permanent move to one of his potential suitors.
The South American striker is familiar with the Barclays Premier League having spent time on loan at Birmingham City back in 2007-08, and Zarate's British representative Barry McIntosh confirmed his client would favour a return to England.
"He is flattered by Spurs' interest and would clearly love to have moved to Tottenham," he told Sky Sports. "[However] it does not look like happening.
"But there was no question he would move on loan, he always wanted a permanent switch so at the moment nothing will happen with that."
Tottenham have great strength in their forward department with the likes of Emmanuel Adebayor, Jermain Defoe, Rafael Van der Vaart and Roman Pavlyuchenko fighting for a starting berth.
But with the Manchester City striker's loan move set to expire at the end of the season, Redknapp is already looking at other options in the transfer market, with the Togolese star unlikely to lower his wage demands in order to sanction a permanent move.