According to a report from Marca, talks have broken down between Vazquez and Real Madrid, and a summer move away from the Bernabeu seems more than likely.
Vazquez has been strongly linked with a move to North London, with both Arsenal and Spurs being interested in the 29-year-old.
Whilst Vazquez has 31 appearances for Los Blancos this season, he has been played in several positions, and he has reportedly become unsure over his role at the club, being played as a right winger and even as a wing-back.
The problem for Arsenal and Spurs is that Vazquez still wishes to play UEFA Champions League football next season, so it will be a tough ask for them to convince him to join, with the two clubs barely having a shot of securing a place in Europe's top competition next season.
Arsenal will have to win the UEFA Europa League, whilst Spurs have to somehow force their way into the Top Four, as they currently sit in eighth.
Vazquez would reportedly want a reunion with Jose Mourinho, after the Portuguese manager worked with the winger during his time at Real Madrid, when Vazquez was still a Real Madrid Castilla player.
However, given Tottenham's exit from the Europa League and their mixed form this season, it is uncertain whether Mourinho will still be at Spurs come by the end of the season.