The job represents a golden opportunity for Villas-Boas. A year ago he took over at London rivals Chelsea on a three-year deal but he struggled at Stamford Bridge and left under a cloud nine months later amid media reports of dressing-room unrest.
"Tottenham Hotspur are a great club with a strong tradition and fantastic support, both at home and throughout the world. I feel privileged to become coach," the 34-year-old told the Spurs website.
"This is one of the most exciting coaching positions in the Premier League. I have had several discussions with the chairman [Daniel Levy] and the board and I share their vision for the future progress of the club.
"This is a squad any coach would love to work with and together I believe we can bring success in the seasons ahead," the Portuguese added after replacing Harry Redknapp who was sacked last month after four years at the helm.
Tottenham removed the popular Redknapp after finishing fourth in the league but failing to qualify for Europe's top competition thanks to Chelsea's victory over Bayern Munich in the Champions League final.
Redknapp's dismissal has cleared the way for Villas-Boas to return to the spotlight and while his appointment will be met with scepticism elsewhere in London, his past triumphs cannot be overlooked.
"He has an outstanding reputation for his technical knowledge of the game and for creating well-organised teams capable of playing football in an attractive and attacking style," said Levy.
"Andre shares our long-term ambitions and ethos of developing players and nurturing young talent."
"We are constantly looking to move the club forward," he said on Tuesday.
"It is important we now look to develop potential within the squads at all levels while strengthening the first team in the summer in key positions with players who will become part of the future success of the club."
