The two clubs have been in negotiations for the England international for the past fortnight.
However, Sky Deutschland says Schalke have ended talks as Spurs would only consider an outright sale. The Londoners’ terms were just too rich for Schalke to consider.
Rose is also the subject of interest from PSG – a move which he favours.
Meanwhile, Schalke have also dismissed claims of an approach this month for Chelsea midfielder Ruben Loftus-Cheek.