The 23-year-old Swedish international has been in scintillating form in the Eredivisie, and is believed to have attracted attention from a host of clubs across Europe.
Red Devils boss Sir Alex Ferguson has been monitoring Elm's progress in Holland with a view to luring him to Old Trafford at the end of the 2011-12 campaign.
However, Manchester United are now set to lose out in the race for the Scandinavian star's signature, after Spurs boss Harry Redknapp hijacked a move for the promising midfielder.
Swedish newspaper Expressen claims that Tottenham have already held negotiations with Alkmaar, meaning Elm will move to White Hart Lane on a three-year deal in the summer.
With 21 international caps to his name, Elm will add good pedigree to a Spurs side already brimming with talent.
Manchester United fans will be disappointed to have lost out on a player labelled by former Sweden coach Lars Lagerback as the most talented star the country has produced since Zlatan Ibrahimovich.