The veteran goalkeeper has been frozen out by new manager Ange Postecoglou, who brought Guglielmo Vicario in to be the team's first-choice goalkeeper over the summer.
The Italian has played every game for Spurs in the Premier League this season, keeping four clean sheets in 12 games.
The form of Vicario has helped Spurs to a spot in the top four heading into November's international break, two points adrift of league leaders Manchester City.
Vicario's instant impact has brought in plaudits from far and wide, with some suggesting that he is also now a threat to Gianluigi Donnarumma's place in goal for the Italian national side.
Behind Vicario, Lloris has not even been used as a backup, with Fraser Forster and Brandon Austin, who has never played with the first team, preferred on the bench.
Lloris was free to leave the club during the summer, with a return to his homeland or a move to Saudi Arabia both on the cards.
However, nothing materialised and Lloris surprisingly stayed put, extending his already lengthy 11-year stay at the club.
Now though, Football Insider claims that Spurs are exploring the option of mutually terminating Lloris's contract, agreeing to pay the goalkeeper off to get his wages off the books.
Lloris is rumoured to be earning around £100,000-per-week at the Tottenham Hotspur Stadium, and with Postecoglou not willing to use him, the club believe it is best to pay off the final few months of his contract.
The 36-year-old has not featured since being forced off at half-time in Spurs' 6-1 defeat at Newcastle United in April, where they found themselves 5-0 down inside 21 minutes.
Spurs welcome Aston Villa to North London in the Premier League on Sunday, with Lloris unlikely to be part of the squad once again.