Lennon, whose recent form has seen him tipped for an England recall, was not thought to be among the top earners in Harry Redknapp's squad.
Redknapp said: 'We're delighted to have him. He is still learning the game but he has real ability.'
Going nowhere: Aaron Lennon has signed a contract extension at Spurs
Calling the shots: Liverpool boss Rafa Benitez had been hoping to lure 21-year-old Lennon to Anfield
The England Under-21 star, who joined Spurs from Leeds in 2005, has enjoyed anupturn in fortunes since Redknapp's arrival.
He was linked with a move to Liverpool in this morning's paperswhile Real Madrid - now under former Spurs boss Juande Ramos - werealso reported to bemonitoring his progress. Hiddink knows his side must down Spurs if Blues are to stay in title hunt
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