The 21-year-old, who moved to White Hart Lane from Leeds in 2005, has been one of Spurs' star performers this season.
He has kept David Bentley out of the side and has been tipped to earn an England recall by manager Harry Redknapp after a number of eye-catching performances.
He impressed in the Carling Cup final defeat to Manchester United and has scored in the recent victories over Hull City and Middlesbrough.
There had been some speculation that Lennon could leave Tottenham during the summer and Liverpool were linked with a move for his services.
However, the winger has now committed his future to the club and will stay with the Londoners for another five years.
The news will come as a major boost to Spurs and Lennon will hope to help the club enjoy more success over the coming years.