Tottenham boss Mauricio Pochettino is keen to sign young English talent when the transfer window reopens in the summer.
Spurs are currently flying high in second place in the Premier League table.
However, Pochettino reportedly wants more pace up front for next season.
And the London Evening Standard claim Tottenham are ready to move for Leicester star Gray.
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Demarai Gray is wanted by Liverpool and Tottenham
Mauricio Pochettino is keen to sign young English talent
The 20-year-old has been a shining light amid a difficult Premier League campaign for the champions so far.
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Liverpool have been backed to move for him with Jurgen Klopp determined to sign two wingers.
Reds manager Jurgen Klopp refused to do business in the January transfer window, instead preferring to leave his deals to the summer months.
Gray is one of two Reds targets – with Bayer Leverkusen's Julian Brandt the other.
Liverpool boss Jurgen Klopp could be frustrated in his bid to sign Demarai Gray
However, Tottenham could poach Gray with Pochettino known for coaxing the best out of young English players.
Dele Alli, Harry Kane and Danny Rose have all blossomed under the former Southampton manager.
Spurs have also reportedly been keeping tabs on Gray dating back to his days as a teenager at Birmingham City.