The significant drop means Spurs are now second-favourites to sign the Chilean forward, after Premier League leaders Chelsea.
Ladbrokes said it made the decision on the back of Sanchez’s comments that he would like to stay in the English capital.
Remaining at Arsenal would be the most likely option for the 28-year-old but as he has stalled on signing a contract extension, speculation is rife.
Chelsea are keen on bringing the former Barcelona man to Stamford Bridge, and according to Ladbrokes, are leading the race at 2/1.
And Tottenham are now hot on their heels, apparently, as 3/1 favourites to secure his signature and bring the Chilean to White Hart Lane.
The odds put them ahead of Paris Saint-Germain at 7/2, Juventus at 5/1, Manchester City at 8/1 and a return to Barcelona at 12/1.
Alex Donohue of Ladbrokes explained the company’s decision, saying: “Sanchez wants a capital city club with a winning mentality.
“Now Spurs are back in the title race, the odds of a sensational switch across the North London divide are shortening by the minute.
“Should Spurs make up further ground on Chelsea while Arsenal flounder outside of the top four, they could soon become favourites for the Chilean’s signature.”
Now we’re sure this news will get Arsenal fans a little hot under the collar, but we’re also pretty sure Sanchez won’t be heading to Tottenham at any point.