The Parisians’ interest in England international Alli, 24, was first reported on over a week ago.
Since then, there have been further reports that PSG were planning to move on due to Daniel Levy’s demands.
However, RMC Sport in France states tonight that in fact negotiations have not collapsed.
PSG are still making an effort to sign Alli on loan before the transfer window shuts.
The deal is described as ‘complicated’ with Levy being ‘the key’ to it having any chance of going through.
Alli was left out of Jose Mourinho’s matchday squads for Spurs’ last two league games against Southampton and Newcastle.
And he is said to be ‘upset and confused’ by Mourinho’s decision to exclude him from recent games.
The former MK Dons man did start on Thursday in Tottenham’s Europa League qualifier against Shkendija, but his future remains in doubt.