The United States international looked like he was heading for Liverpool earlier on Friday, but has now moved to White Hart Lane.
Reports claim Dempsey has joined Spurs for a reported fee of £6million.
Dempsey has signed a three-year contract with the north London club.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.