Spurs have successfully landed the Iceland international for a fee of £8 million, ending the possibility of a reunion with former Swansea manager Brendan Rodgers at Liverpool
Tottenham have announced the signing of midfielder Gylfi Sigurdsson from Hoffenheim on their official website.
The 22-year-old becomes Andre Villas-Boas' first signing as Spurs' head coach in an £8 million deal.
Sigurdsson is understood to have agreed a salary package worth £50,000-a-week after Spurs fought off competition from Liverpool.
The Reds had been in pole position to sign Sigurdsson as the player appeared keen to re-unite with Brendan Rodgers, with whom he worked at Swansea during a loan spell last season.
But Tottenham made their move for the former Reading man and agreed a deal in principle last week.
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The Swans had agreed terms to make Sigurdsson's move permanent but their hopes were ended when Rodgers departed to take over at Anfield.
His arrival could raise questions over the future of Rafael Van der Vaart, who has been strongly linked with a return to Germany where Hamburg and Schalke are both monitoring his situation.
Spurs are expected to be active in the transfer market ahead of the coming season as they back Villas-Boas, who was formally appointed on Tuesday, to get the club back in the Champions League.