The Surinamese-born full-back is overjoyed at his return to the Liberty Stadium following protracted negotiations, and is now hoping to earn a place back in the Netherlands squad
The 27-year-old joined the Premier League side as a free agent in September 2012 as cover for Neil Taylor, who suffered a broken ankle.
He subsequently became a regular fixture for Michael Laudrup's side, and his form saw him earn international recognition with the Netherlands.
It was originally thought Tiendalli would not return to the Liberty Stadium after failing to agree terms over a new deal, but the club have now managed to find a solution.
"I'm very happy to have signed this contract," he told the club's official website. "I had a great experience here last season and I'm delighted to be back.
"I know the people, the club, the stadium and the city. For me it's amazing to get back and to be part of Swansea City again.
"It took a little bit longer than expected to finalise, but my first thought was always to sign for Swansea.
"I was very grateful to Swansea for the chance they gave me last season, especially to play in the Premier League - the best league in the world.
"Also, without Swansea I wouldn't have made an appearance in the national squad.
"I think I did a good job overall, but as a person I'm never satisfied and I believe I can always be better."