The £3m-rated player has previously been linked to Portsmouth but wants a move to London although the two clubs have yet to reach agreement over a transfer fee.
New Juventus coach Fabio Capello is keen to bring in funds for fresh signings and will allow Tudor to quit for Spurs, who play their final preseason friendly against Celtic tonight, even though he is contracted to the Italian side until 2005.
Meanwhile, Spurs' proposed £3m deal for Liverpool midfielder Murphy faltered on the player's desire to be given guaranteed first-team football - something which the club would not accept.
There were also understood to issues over Murphy's wage demands. Now Charlton are favourites to land the England international.
A Spurs spokesman said: "We have withdrawn from negotiations following a meeting with the player.
"We acknowledge that a guaranteed first-team place was a deciding factor in his decision and wish him well."
Elsewhere, Tottenham's sporting director Frank Arnesen has admitted he is not happy with the timing of defender Stephen Carr's proposed £2m move to Newcastle.
The two clubs yesterday agreed the fee for the Republic of Ireland international but the deal remains subject to personal terms and a successful medical.
Arnesen said: "We've always rated Stephen as a player and at this stage we wouldn't have chosen to let him go. I respect his decision, I'll be sorry to see him go and wish him well.
"The club wish Stephen and his family all the best on his move to St James' Park."
Carr joined Spurs as a trainee in 1992 and made over 250 appearances for the club between 1993 and 2004.
But the 27-year-old refused to sign an extension to his contract which had one year left to run and Spurs opted to cash-in on the player rather than let him leave on a free transfer next summer.
