Peter Storrie has confirmed the England international is likely to move on as the shutters come up on the January transfer window.
He admitted Defoe appeared keen to quit Fratton Park.
But he rubbished talk of a £30m triple bid from Spurs for Defoe, Peter Crouch and Glen Johnson.
And Storrie promised there would be no January fire sale of the club's most bankable assets.
The Pompey executive-chairman's revelation comes with incessant talk of a player exodus reaching fever pitch.
Storrie insisted no mass exit would take place, and players would only leave on the Blues' terms.
Defoe has been linked with moves to Manchester City, Aston Villa and a return to former club Spurs.
And Storrie has conceded for the first time the 26-year-old is set to be on his way.
Storrie said: 'We don't speak about transfers as a rule but this talk about there being a bid from Spurs for Glen and Peter is complete and utter rubbish.
'It's absolute nonsense, farcical.
'It looks like Jermain wants to go.
'That is something we will be speaking to him about.
'But if Jermain goes it will be at our price and if there is an offer which appeals.
'We have always said we will not keep people who do not want to play for Portsmouth Football Club.
'We do not have to sell anyone, but if anyone wants to go that is a different matter. We have sold Lassana Diarra and we don't have to get rid of anyone else if we don't want to.'
Hermann Hreidarsson looks certain to be on his way this month after confirming he is keen to leave Pompey.
The Iceland international has fallen out of favour under Tony Adams, featuring in just one game since he succeeded Harry Redknapp.
Hreidarsson said: 'Nothing has changed. I want to leave Portsmouth and the club knows my position and I know they will not make it difficult for me to leave.
'I have been in contact with a few clubs and I fully expect to be at another club come the end of this month.
'Nothing is concrete yet, but hopefully things will get clearer very soon.'
Storrie has already said Richard Duffy and Lauren are also to leave the club.
But he promised that players are likely to be coming in shortly, with a host of names at home and abroad being linked with Pompey.
Storrie was confident there would be players arriving early this month following the £4.4m arrival of Nadir Belhadj.
He said: 'We are talking to people.
'There are a number of different possibilities that we are looking at.
'We are hoping to do business sooner rather than later.'
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