The Telegraph reported that Spurs came up with a structured loan bid to sign the 25-year-old.
Wolves immediately rejected an initial proposal of a loan deal that included a £5 million loan fee for the Spanish international.
They are unwilling to sell their prized asset on loan, but if Spurs make a bid of around £50m they would consider the offer.
Wolves manager Bruno Lage has already claimed that Traore is a key part of his plans, and he is not even thinking of selling him this summer.
However, cash-strapped Wolves could be forced to do business if there’s a good offer on the table.
Traore has two years left on his current deal, and there is no indication that he wants to sign an extension.
Meanwhile, The Athletic’s David Ornstein has claimed that a move for Traore is unlikely to happen unless Spurs meet the asking price.
Wolves are also in discussions to sign Renato Sanches from Lille. However, the deal is said to be at a deadlock on the club-to-club terms.