The Spurs boss rules out an exit for the 31-year-old striker and says that he is happy for him to compete for a place up front with Roberto Soldado and Emmanuel Adebayor.
The 31-year-old became Spurs' all-time record goalscorer in European competition after netting against Sheriff on Thursday in the Europa League but remains a bit-part player in north London, with only one Premier League start in 2013-14.
Defore has hit nine goals this season, three more than Roberto Soldado, but the Spaniard remains Villas-Boas' preferred option in attack.
"No, [Defoe] will not be leaving. We are pretty happy with the goals he is producing," the Tottenham boss told reporters. "He is on nine already so it is a great start for him and it doesn't change our perspective regarding him."
Despite not being a regular for Spurs, Defoe has still been called up into the England squad for November's international friendlies against Chile and Germany and Villas-Boas feels that he is an important player for the Three Lions.
"I am not sure about Roy Hodgson’s selection process but what I have seen is that he has been counting on Jermain in the same way and has included him in all call-ups this season. That wouldn't appear to matter on his selection," he said. "Obviously, everyone wants to get matches in the Premier League but we've found comfort playing in this system and three strikers [Soldado, Defoe and Emmanuel Adebayor] are competing for one position so it's not easy for any of them."