Tel was informed by manager Thomas Frank that he was being dropped from the squad in favour of fit-again Dominic Solanke.
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The Frenchman had originally been omitted from the squad at the start of the season before being called up after Solanke had suffered injury.
But now Tel will have no place in either of Spurs' final two league phase games, against Borussia Dortmund and Eintracht Frankfurt, this season.
Solanke has now recovered from an ankle injury and featured in defeats to Aston Villa and West Ham in the Premier League and FA Cup respectively.