I have created a Linux VM. When I try to install the vmware tools package in this VM the option is grayed out. I could not find an iso image for the vmware tools, so how do I go about installing the vmware tools package in my Linux VM?
Curiously this is only an issue with Linux VM, I can install the vmware tools package on a Windows VM.
VMware tools is nowadays bundled with most Linux distributions.
Look for a package called open-vm-tools and open-vm-tools-desktop
Since you don't mention what distribution you are using, can't give any additional advice.