Southampton on Sundayas interim boss and has now been handed a
contract until the end of the 2014-15 Premier League season.
Sherwood, 44, replaces Andre Villas-Boas, who was sacked last week.
"We believe Tim has both the knowledge and the drive to take the squad
forward," Tottenham chairman Daniel Levy told the club's official
website.
Sherwood, who won three caps for England, joined Tottenham as a player
in 1999 from Blackburn, where he won the Premier League title in 1995.
He left White Hart Lane in 2003 and moved to Portsmouth but returned
as part of the club's coaching staff in 2008 under manager Harry
Redknapp.
Sherwood was working as technical co-ordinator when chairman Levy
asked him to look after the first team following the departure of
Villas-Boas.
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