Capoue, who plays as a defensive midfielder but can also operate at centre-back, scored seven goals in 34 league appearances for Toulouse last season.
The deal is believed to be worth 11million euros (£9.5million) plus two million euros (£1.7million) in add-ons, with the French international set to sign a four-year contract once passing a medical in north London.
Manager Andre Villas-Boas has already signed Brazilian playmaker Paulinho, Belgian winger Nacer Chadli and Spain striker Roberto Soldado while Spurs look to fend off Real Madrid's advances for Gareth Bale.
The news of the impending transfer was first announced in a radio interview by Toulouse president Olivier Sadran on Wednesday, who had claimed that the London club had met the player’s asking price.
Tottenham have reportedly now agreed terms with the holding midfield player with a medical the last obstacle to the transfer being completed, according to reports across numerous new agencies.