The former Spurs midfielder has been in caretaker charge at White Hart Lance since Andre Villas-Boas' tenure came to an end following a 5-0 home defeat to Liverpool earlier this month.

Sherwood has overseen a League Cup loss to West Ham and Sunday's 3-2 victory away to Southampton in the Premier League.

A host of other names had been linked with the vacancy but chairman Daniel Levy confirmed on Monday that the club had opted to stick with Sherwood.

"We were extremely reluctant to make a change mid-season, but felt we had to do so in the club's best interests," Levy said in a statement on the club's official website.

"We have a great squad and we owe them a head coach who will bring out the best in them and allow them to flourish and enjoy a strong, exciting finish to the season.

"We are in the fortunate position of having within our club a talented coach in Tim Sherwood.

"We believe Tim has both the knowledge and the drive to take the squad forward."

Sherwood's first-team coaching staff also includes Chris Ramsey, Les Ferdinand and Steffen Freund.

Villas-Boas' fate was sealed by that heavy home loss to Brendan Rodgers' side, which left Tottenham seventh in the table.

The former Chelsea coach was under added pressure to deliver results following significant spending in pre-season, but the loss of star player Gareth Bale to Real Madrid has clearly impacted on Tottenham's attacking prowess.

Sherwood has shown a desire to switch things up in his two games in charge so far, opting to recall the previously overlooked Emmanuel Adebayor in a 4-4-2 formation, with a greater emphasis on width and playing at a high tempo.

It is an approach that has won favour with the Spurs fans, many of whom were frustrated at the apparent toothlessness of the side under the previous coach.

Tottenham's first game under Sherwood's permanent charge will be Thursday's home clash with West Brom.