Alli has been in stunning form for Tottenham this season.
The 20-year-old has bagged 18 goals from 41 appearances to help Spurs up to second in the Premier League table.
Real Madrid are keen to sign him with manager Zinedine Zidane impressed by his displays.
Gareth Bale wants Real Madrid to sign Dele Alli
Reports in Spain claimed last month the midfielder was also wanted at the Bernabeu by former Tottenham star Gareth Bale.
However, the Daily Mail claim Tottenham are confident Alli will rebuff Madrid's approaches this summer.
As well as the Spanish giants, Manchester City are also determined to snap him up.
But Spurs believe Alli will stay at White Hart Lane.
Tottenham believe Dele Alli will snub Real Madrid transfer
Madrid are set to focus their efforts on landing Chelsea's Eden Hazard.
And Tottenham also reckon City have other priorities.
Alli is expected to start for Spurs when they go up against Watford on Saturday (12.30pm).
Get Quotes on Home Insurance