Journalist Sacha Tavolieri reports that the Senegal international was informed he is available on the transfer market, a message the 23-year-old did not take well, with talks now continuing over a move to Galatasaray.
Tottenham have rejected an opening €18 million bid from the Turkish champions and are demanding at least €25 million to sanction the sale, according to Tavolieri's reporting.
Galatasaray have since returned with an improved €20 million offer, which was also turned down, according to Turkish outlet Sabah, though the two clubs are understood to be edging closer to an agreement.
Journalist Yağız Sabuncuoğlu explained that Galatasaray first need to sell a player of their own before completing a deal for Sarr.
"Pape Matar Sarr. If there's a departure there, they're in talks with Tottenham's player regarding a potential separation at the moment," he said. "The player is also very keen to join Galatasaray, by the way.
"But as I said, a departure is needed; we need Pape Sarr. That's why let's say he's at the top of the list: Pape Matar Sarr.
"Just like Ermedin Demirović is currently at the top of the striker list, Pape is at the very top of the midfield list."
Sarr joined Tottenham from Metz in August 2021 and extended his contract to 2030 in January 2024 after establishing himself as a regular in midfield, contributing the cross for Brennan Johnson's opener in the 2025 Europa League final.
However, a summer of heavy investment in central midfield — with Mateus Fernandes and Sandro Tonali both arriving at a combined cost of around £185 million — has left him with a limited pathway to regular football this season.
Aston Villa and Al-Ahli have also been credited with interest in Sarr, though both are understood to have stepped back from the race as Galatasaray have moved to agree personal terms with the player over what is reported to be a three-year contract worth around $10 million a year.