Sissoko is out of contract in the summer, and as a result has been in talks with a number of clubs about his future - with Newcastle leading the chase for his signature.
It is now believed that Newcastle are close to finalising a pre-contract for the player, who they want to sign this month.
However, with Toulouse demanding €3million to let the player leave - he looks unlikely to get his wish of a move.
The Pink City outfit are far from happy with Sissoko and he has now been suspended, which means he will not play in Wednesday's Coupe de France clash with Paris St Germain.
Toulouse coach Alain Casanova says everyone at the club is firmly behind the decision of the chairman.
"The whole club shows full solidarity to that chairman's decision," he told L'Equipe.
"It is really a shame a player educated at the club could leave as free agent. His absence is big loss for the team, but that decision is logical."
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