Both Arsenal and Spurs will have to battle it out with Manchester United, who lead the way in the race to secure the talented youngster.
Kagawa, who has previously stated his desire to leave the Bundesliga champions at the end of the season, has been heavily linked with a move to Manchester United, with some reports suggesting that a deal had been done to take the Japanese international to Old Trafford.
The 23-year-old insisted on Japanese television earlier this month that he would be playing for the Red Devils next season, saying: “May 12 will be my last game for Dortmund and then I will start a new chapter in Manchester United”
While Kagawa has since backtracked over his comments and insisted that he will not decide on his future until Dortmund’s cup final game against Bayern Munich tomorrow, the German club’s president Michael Zorc revealed that he has turned down an offer of a contract extension and will be heading to England in the summer.
According to the Daily Express, that has alerted Arsenal, who got to watch the talented youngster in the flesh when they played Dortmund in the Champions League group stages earlier this season.
The Gunners have been proactive in the transfer market ahead of what is expected to be a busy summer at the Emirates Stadium, and with just one year left on his current deal, Kagawa may be available for a cut-price fee of around £5 million, a price likely to pique the interest of Arsene Wenger.
It is reported that Tottenham are also in the hunt for the attacking midfielder, although how strong their interest is remains unclear.
Spurs look set to do battle with fierce rivals Arsenal in the transfer market at they pursue similar targets, with Jan Vertonghen and Junior Hoilett on the radar of both north London outfits.