Spurs will pay the 27-year-old forward's wages for the remainder of the season while he travels to London for his medical examination.
After spending £45 million to join Chelsea from RB Leipzig in 2020, Werner has Premier League experience with the team.
The German, who returned to Leipzig in 2022, scored 23 goals in 89 games for Chelsea.
In 14 games this season, he has netted two goals for the Bundesliga team, who disclosed on Saturday that he was not present for their friendly against St Gallen due to transfer negotiations.
Since then, Leipzig manager Marco Rose has stated that the attacker would soon be moving to north London.
Timo's desire to take out a loan is valid. Rose said to Sky Germany that Timo would like to attend the European Championship.
"We wish him all the best and are keeping our fingers crossed for him."
Despite having 57 caps for Germany, Werner did not play for his nation during a friendly loss to Belgium in March of 2023.