A hard-fought win over positional rivals Everton has boosted the club's top-four hopes, but they still trail fourth-placed Liverpool by three points.
And Sherwood fears a lack of Champions League football could lead to a White Hart Lane exodus, although he has no doubt the club could attract players of equal calibre.
|11/4||Tottenham are 11/4 with bet365 to finish in the top four|
"At other clubs, these players will go and sit on bench and pick up championship medals, which is not what I would have done.
"This club sell themselves and are bigger than any manager. It’s a massive club, and players will come if they want. They know full well what this club can offer.
"If the be-all and end-all is the Champions League and we’re not in it, they have to make a decision."
Sherwood insisted he does not underestimate how important a top-four finish would be for Spurs, but knows how big a task lies ahead if they are to achieve that goal.
"It's massive for the club," he added. "We all want it, but so do Manchester United, so do Liverpool, so do Arsenal.
"Our target is fourth place, it always has been. If we can get higher than that, great."