Apart from Tottenham, who are rumored to be interested in Nagelsmann, there is also Spanish giant Real Madrid who made an approach with the former Bayern Munich coach. Real Madrid projected Nagelsmann as a replacement for Ancelotti, who is currently also rumored to be the new manager of the Brazilian national team. Nagelsmann was considered appropriate to replace Ancelotti because he was a young coach who had successfully brought Bayern Munich to several titles.
If these rumors are true, I believe Nagelsmann will choose Real Madrid over Tottenham, because given the great history that Real Madrid has made and Nagelsmann can continue this tradition. To train Real Madrid is not easy and is exactly like training Bayern Munich, because the club has big players who sometimes have their own egos, but Nagelsmann has managed to keep the Bayern Munich squad solid and maybe that is also a consideration for Real Madrid's management
I'm surprised Real Madrid is trying to negotiate with Nagelsmann. If we compare his achievement with Ancelotti, Ancelotti is still much better than him. The current bad results got by Real Madrid aren't totally caused by Ancelotti. I think the main problem is the quality of Real Madrid attackers, they are lack of quality strikers, they only rely on Benzema. To deal with the problem is signing top strikers, not changing the coach.

Sure, Nagelsmann will choose Real Madrid if he gets the offer from Real Madrid. But I assume it is just a rumor, I think Real Madrid will try to keep Ancelotti for the next few seasons.