The 24-year-old, who joined Spurs from Dinamo Zagreb in summer 2008, had been linked with a big-money move to Manchester United after impressing for the north London club over the past two seasons.
But he today committed his long-term future to Tottenham, insisting he had "no interest in going anywhere else".
He told tottenhamhotspur.com: "Tottenham Hotspur gave me my chance in the Premier League and I want to go on to achieve great success here with them.
"Yes, there have been enquiries from other big clubs, but I have no interest in going anywhere.
"Last season's top-four finish was an indication of where we are as a club and I feel I can continue to improve and go on to achieve everything I want to at Spurs."
Modric was a key player as Harry Redknapp's side finished fourth in the Premier League in 2009/10 to secure a place in the Champions League qualifying round.
He has featured 77 times for Spurs, scoring eight goals.