Alli, 24, was substituted at half-time in Spurs’ defeat to Everton last weekend and was left upset by the decision.
He was left out of Jose Mourinho’s squad to face Southampton on Sunday, fueling speculation his future is away from Spurs.
PSG are long-time admirers of Alli and have reportedly taken concrete steps towards securing him.
It is unclear what the formula of the transfer would be – a loan with the option to buy or permanent deal.
Given that Spurs are open to loaning out Alli, PSG sporting director Leonardo could ask for an initial loan deal.
Italian side Inter have also expressed an interest in Alli, but PSG have made the first move.
Alli has made 223 appearances for Spurs since joining from MK Dons, scoring 62 goals and delivering 55 assists.