Sky Sports reports how the 23-year-old was heavily linked with a switch to Merseyside at the end of last season, where Brendan Rodgers had just taken over, after working closely with the Iceland international at Swansea in 2011/12.
Sigurdsson admitted that he was tempted by an offer to be reunited with Rodgers at Anfield, after enjoying his training methods and man-management skills during his time at the Liberty Stadium.
However, with Spurs flying high in the Premier League and in Europe, after last night's 3-0 win over Inter Milan at White Hart Lane, he says his choice to link-up with Andre Villas-Boas has been justified.
After playing a starring role in Thursday's Europa League last-16 first leg victory, the former Reading star is relishing the prospect of facing his former boss and old Swans team-mate Joe Allen, when Tottenham travel to Merseyside to face Liverpool on Sunday.
"It will be really good to play against Brendan Rogers again, and also Joe Allen, who was with me at Swansea," he told www.tottenhamjournal.co.uk. "How hard was it to turn Liverpool down? It was more that I knew Brendan, other than the history Liverpool have.
"But when Tottenham came in, the way they were last year and in the previous two years. They finished fourth last year and they were unlucky not to get Champions League football, and you could see from this game [against Inter] that this is a great club with fantastic players. I'm really pleased I made that choice."
A convincing display against Inter Milan means Spurs are now strong favourites to qualify for the quarter-finals of Europe's second tier competition. But, Sigurdsson insists that the club's priority is to secure qualification for the Champions League next year, via a top-four finish in the Premier League.
"Hopefully it's the right decision [to join Tottenham]. It could have been the other way round - we could have been eighth [at this point] and they [Liverpool] could have been third or fourth - but I'm really happy with the decision I made.
"This is a club that has got so many good players, and hopefully we can be in the Champions League next season."