Spurs have wanted to add the former Arsenal and Chelsea man to their ranks for some time but his £20m price tag was a major sticking point, especially with the club missing out on a Champions League spot last season and the financial windfall it brings.
But Jose Mourinho's side are now willing to accept £15m for the Frenchman who played under Redknapp at Portsmouth before joining the La Liga side.
Spurs will now move swiftly for Diarra, who started just 19 league games in Spain last season and was withdrawn in five of those.
If they can offload Wilson Palacios to Stoke, Redknapp will use some of the proceeds to fund a move for 26-year-old Diarra.
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