Ausilio spent 28 years in various roles at Inter Milan, the Italian giants he left this month, and looks set to fill a position Tottenham have been searching to fill since Fabio Paratici's departure.
The two parties are understood to be closing in on a deal, according to Gazzetta dello Sport, with Tottenham currently sitting 17th in the Premier League and still without a league win this season.
At Hotspur Way, Ausilio would work closely with head coach Roberto De Zerbi, who has been in charge at Tottenham since last season and is said to be an admirer of the veteran Italian.
Ausilio would inherit a squad shaped by a costly summer rebuild, with Tottenham spending close to €500 million on new arrivals without yet finding the net in the Premier League this season.
His arrival would make him the second Italian to hold the sporting director post at Tottenham in recent years, following Paratici, who left north London for Fiorentina at the start of the year.
During his near three-decade spell at Inter, Ausilio built a reputation for shrewd recruitment on a limited budget, helping the club reach two Champions League finals and win multiple domestic honours.
Players brought to the San Siro under his stewardship included Stefan de Vrij, Denzel Dumfries, Henrikh Mkhitaryan and Francesco Acerbi, each recruited as Inter balanced ambition with tight financial restraints.
Tottenham's move for Ausilio comes amid a wider reshuffle behind the scenes at the club as they look to rebuild following a difficult start to the season under De Zerbi, who has yet to see his side win in the league.
The club have been operating without a permanent sporting director for several months, with existing football operations staff sharing responsibilities in the meantime.
Reports in Italy suggest talks between the two parties have progressed steadily since Ausilio's exit from Inter was confirmed, with further developments expected in the coming weeks as Tottenham look to have a new structure in place before the winter transfer window opens in January.