When asked about Capoue joining Spurs, Toulouse chief Olivier Sadran told French radio station RMC: "He will go there."
A fee of around £9.5m is thought to have been agreed plus bonuses.
There was some suggestion this afternoon he was heading to London for a medical.
Capoue is the second high profile player to decide against a move to cardiff despite fees and terms being agreed.
Cardiff are still linked with Tottenham's Tom Huddlestone. As one door closes maybe another will open.