The three-year deal confirms the England striker will be staying with Andre Villas-Boas' side after being linked with a move away this summer.
Defoe is delighted to have agreed terms on a new contract to stay at Spurs for the foreseeable future and is also looking forward to joining up with the England squad ahead of their World Cup qualifying games against Moldova and Ukraine.
"Fantastic week signed my new contract at spurs & meeting up with England on Monday for 2 important games #goalsgoalsgoals," Defoe wrote on his Twitter page.
The 29-year-old is currently in his second spell at Tottenham after rejoining the club from Portsmouth in 2009 and despite not being first-choice last season he still managed to bag 17 goals.
He has already found the target this campaign scoring against Newcastle on the opening day of the season.