The French midfielder was signed by former manager Andre Villas-Boas as a part of his £110m Spurs revolution during the last window, and despite being billed as one of Ligue 1’s top talents prior to the switch from Toulouse, has struggled at White Hart Lane.
After an initial bright start, the 25-year-old suffered an extended period on the sidelines through injury before being used as an emergency centre-back.
Since then Sherwood has taken charge of the North London club, and has altered the tactics used by his predecessor.
Spurs have now switched to a 4-4-2 set-up, which demands much more energy and industry from its central players than AVB’s favoured formation.
Sherwood is said to have grown frustrated with Capoue’s playing style, and does not see him as a player that suits his requirements.
As a result, he is believed to be willing to let him leave if a decent offer is received before the transfer window closes.
Capoue has been linked with sides in his homeland as well as top teams from Italy.