The 23-year-old has been heavily linked with a move Spurs over the past 18 months, but the north London club failed with a reported £16m bid on deadline day.
And Villas-Boas, who failed to bring in a striker to provide cover for Emmanuel Adebayor and Jermain Defoe, doubts the Brazilian will move to White Hart Lane in the near future.
“The player has been linked recently with Spurs, we’ve made it public before that it’s a player that we chase, but we couldn’t agree on the full conditions so we’ve moved on,” said Villas-Boas.
“Could it [a deal for Damiao] happen in the summer? No I don’t think so, it’s probably finished now.”
The 35-year-old also revealed Reading failed in a last-ditch bid to sign struggling Tottenham midfielder Gylfi Sigurdsson.
“Obviously he’s a player that means a lot to Reading, from their academy,” added Villas-Boas.
“He’s a player that Brian [McDermott] appreciates and he probably could have been a big boost for them. But he’s a player that we rate very highly, we couldn’t allow him to leave.”