The Daily Star reports that Kranjcar has decided to leave Spurs in order to get regular first-team football.
Spurs boss Harry Redknapp wanted to keep the winger at White Hart Lane.
CSKA Moscow and Lokomotiv Moscow were also interested in signing Kranjcar, but the winger has decided to join Ukrainian side Dynamo Kiev instead.
Kranjcar said: “The two clubs have reached an agreement, there are just a few minor details to be sorted out and I am still to define my personal terms.
“I will let my agent handle it as I am now completely focused on playing for the national team in Euro 2012.”