The English club asked for Belotti, 26, on loan with an option to buy for €50m (£46.3m) next summer.
But Torino informed Spurs that they will only consider selling Belotti in A cash-only deal.
Italy international Belotti has been coveted for a number of years by important clubs across Europe.
He has hit double figures in all five seasons he has been at Torino, scoring 92 goals in 192 appearances.
Jose Mourinho is desperate to add a striker to his Spurs squad and expects one to arrive before the transfer window shuts.
“I want, I need a striker,” Mourinho said today ahead of Spurs’ season opener against Everton on Sunday.
“But I want to make it very, very clear that the club – the structure above me – knows that I need a striker and also wants a striker.
“Are we going to get one? I honestly believe so. For the balance of the squad, the team needs it.”
However, it will not be Belotti unless Spurs return to Torino with a straight cash offer.