The 19-year-old is a product of the Tottenham Hotspur academy and he is very highly rated at Spurs.
Last season, he joined League One outfit Portsmouth on loan and scored four times in 34 league appearances for Pompey.
Championship side Ipswich Town are interested in Scarlett and they are on the verge of agreeing a loan deal for the young forward.
However, before leaving London, Scarlett will sign a new deal with Tottenham, extending his contract.
Scarlett last signed a contract in 2022, which is set to expire at the end of June 2026.
Ipswich Town boss Kieran McKenna wants to add more firepower to his squad and believes that the Tottenham youngster will be able to provide that.
The 19-year-old has already made eleven senior appearances for Tottenham and featured in Spurs’ EFL Cup tie against Fulham this season.