Tottenham have reportedly been offered a £17m 'take it or leave it' package from City Hall in order to re-develop White Hart Lane.
The North London club are keen to improve their current home as well as the surrounding area, considered one of the most run-down in London, in order to increase revenue.
However, they are continuing their legal battle with the Olympic Park Legacy Company, after West Ham United were granted full custody of the Olympic Stadium following the conclusion of the 2012 Olympics.
Mayor Boris Johnson is keen to improve the Tottenham area and his office are willing to offer £8.5m from the public purse, with a further £8.5m provided by Haringey council.
"There is an extremely generous deal on the table. This is a sizeable chunk of the public money," a source close to the Negotiations said.
"We cannot understand why the club is dragging its feet if it claims to be committed to the area.
"If they don't take it, we will start exploring other options and talking to other people."
Boris Johnson also vented his frustration adding: "The club knows there is no more money available from the public purse and I sincerely hope they they accept the offer we have made.
"It is not just in the best interests of Tottenham Hotspur and the fans of this great London club, but of the wider North London community."
Spurs have been urged to drop their judicial review over the decision to award the Olympic Stadium to West Ham in recent months and it remains to be seen whether or not the latest offer will be accepted by the chairman, Daniel Levy.