According to AS, the Londoners contacted the Spanish giants to kick-start negotiations for the attacking midfielder.
However, Los Blancos have informed them that Asensio is not for sale unless his release clause is paid in full.
The 23-year-old has a €700 million release clause. Asensio has 6 goals and 4 assists for Real Madrid this season.
It is certain that no club can afford to pay that kind of money for Asensio and Spurs will now have to look at other targets.
Pochettino is keen on improving his side’s creativity this summer and Tottenham have been linked with the likes of Grealish, Sessegnon and Zaniolo.
Christian Eriksen has been linked with a move away from the club and if he decides to move on, Spurs will have to bring in a good creative midfielder.
Asensio could have been a superb signing for Pochettino. The Spaniard has all the tools to develop into a world class footballer.
It will be interesting to see where Tottenham are looking next. They need to improve their attack in order to challenge the likes of Liverpool and Manchester City next season.