Speculation has claimed that Spurs are closing in on the capture of the 17-year-old, who has already made three appearances for Croatia.
Spurs were interested in Halilovic during the summer after being linked with a double swoop for the midfielder and his former team-mate Tin Jedvaj.
Defender Jedvaj ultimately joined Serie A leaders Roma and Sky Sports understands that Spurs are not planning a fresh attempt to sign Halilovic.
The youngster, who has been compared to former Spurs midfielder Luka Modric, is out of contract at Dinamo at the end of the season and would reportedly cost £12million.
Spurs boss Andre Villas-Boas significantly strengthened his midfield options during the transfer window after signing the likes of Paulinho, Etienne Capoue, Christian Eriksen and Nacer Chadli.
Villas-Boas has also seen Brazilian midfielder Sandro return to fitness and Andros Townsend emerge as a first-team regular following the winger's impressive loan spell at Queens Park Rangers last season.