West Ham appeared to be favourites to sign the 31-year-old striker after he underwent a medical at Upton Park earlier this week.
However, reports suggest that Spurs are now in talks with Gudjohnsen which has upset new Hammers owner David Sullivan.
"We thought we had a deal and the player had even had a medical," he said.
"We then heard that Tottenham were trying to speak to the player.
"I can't say I am happy about it but I believe in karma and what goes around, comes around."
