The 24-year-old spent the last six months of the season on loan at Molineux and helped Wolves secure their Barclays Premier League status.
The midfielder will join the club for an undisclosed fee following the completion of his loan from Spurs.
Wolves CEO Jez Moxey said: "We are delighted to make Jamie our first confirmed signing of the summer particularly given the impressive loan spell he enjoyed with us over the second half of last season.
"He made a very positive impact both on and off the pitch and played a key role in helping us achieve our aim of Premier League survival.
"What is more, he settled very well at the club and his attitude and ability epitomises what the manager looks for in each and every member of his squad.
"Our desire to sign Jamie was evident in the option agreed with Tottenham to potentially make the loan deal permanent at the end of the season.
"I can confirm we exercised the option as soon as the campaign had finished but as ever at this time of year, holidays for various parties meant we couldn't announce anything until now.
"Given how keen Jamie was to join us, we always knew it was just a matter of completing