The new deal will keep the 29-year-old centre-half at White Hart Lane until the summer of 2016.
Dawson joined Tottenham from Nottingham Forest in January 2005, in a join £8million deal with Andy Reid.
The England centre-back has made 293 appearances and scored 10 goals for the club.
Dawson came close to joining Queens Park Rangers in August 2012 after Andre Villas-Boas took over as Spurs boss.
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The start of the 2017-18 Premier League season is just around the corner and is shaping up to be one of the most competitive yet.
As always it is the so called “big clubs” that have splashed the most cash in the transfer window so far this summer. Manchester United or City? Arsenal or Tottenham? Who are the winners and losers of the transfer window so far?