According to Sky Sports, Mauricio Pochettino's side will opt against making another offer for the 22-year-old, having seen a £25m bid rejected by the Championship club earlier in the week, and now looks likely to be staying at Villa Park.
Grealish had been a prime target for Spurs throughout the course of the transfer window, and appeared to be moving to north London after Aston Villa plunged into financial difficulty, although following the arrival of new owners, they were adamant that he would remain at the club.
The midfielder played 83 minutes for Aston Villa against Hull City in their opening game of the Championship, providing the assist for Tommy Elphick's opener despite speculation surrounding his future, although recent developments suggest he'll continue to be a Villa player.
Tottenham are still the only Premier League side yet to make any new signings, and now with a deal for Grealish reportedly off, it seems unlikely that Pochettino will add to his squad so late into the window.
It's unclear as to whether Tottenham will return for Grealish in January, although their attention will now turn to their season opener against Newcastle this weekend.
Aston Villa however will be delighted with keeping hold of their star player, and will more than likely play a key role as the Villains look to return to the Premier League this season, having lost out to Fulham in the 2017/18 Championship playoff final.