Fears that the 2011 PFA Player of the Year Bale could seek a move grew when Spurs missed out on a place in the competition last month and boss Harry Redknapp was sacked.
But the 22-year-old said: “The club is progressing and I want to be a part of that, so it was great to get the deal done. I love the club and the fans and I want to play my part in trying to get us back into the Champions League – where we belong.”
Former Chelsea manager Andre Villas-Boas is tipped to replace Redknapp. Croatian defender Vedran Corluka, meanwhile, has joined Spartak Moscow.