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Portsmouth officials were yesterday in talks with Sherwood's representatives as well as his agant Eric Hall.
The former England midfielder has been frozen out this season by Spurs boss Glenn Hoddle. Although Sherwood has spent part of the season on the treatment table, he has not been able to force his way back into the squad since returning to full fitness.
Tim Sherwood would not only bring his undoubted skill, as well as his tough tackling to the club, but also a wealth of experience that saw him captain Blackburn Rovers to the Premiership title in 1995.
West Brom are also reportedly keen on signing the player, but with Portsmouth previously having been in talks with the player earlier in the season, the blues are favourites to capture his signature.
No initail fee would be involved, however if Pompey were to gain promotion then a sum of around £150,000 is expected to be paid to Tottenham.