The new deal will keep the 29-year-old at White Hart Lane until the summer of 2015.
Defoe had been linked with a move away from Spurs in recent months.
Defoe has made 300 appearances and scored 119 goals for Tottenham.
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Being an amiable guy is good for you and Jurgen Klopp is living proof.
Summer 2016 is set to be a very exciting time for football fans, as this is when the long awaited Euro 2016 tournament kicks off.