Barcelona, Real Madrid and Manchester City were linked with a move for Bale, but he has extended his stay at White Hart Lane by a further season until 2016.
The 22-year-old Wales winger made his decision despite Tottenham’s failure to qualify for next season’s Champions League.
Instead, he wants to ensure managerless Spurs are restored to Europe’s elite competition for the 2013/14 campaign.
“The club is progressing and I want to be a part of that, so it was great to get the deal done,” Bale said.
“I’ve been here for five years now and I’ve enjoyed every minute,” he said.
“The fans have been great to me and I’d love to repay them and do the very best for them.
“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.
“We have a good, young squad and we need to work together to get back on the biggest stage.”
Bale’s decision to stay is a significant coup for Spurs, who are in a state of flux following the departure of Harry Redknapp last week.
Former Chelsea boss Andre Villas-Boas is reportedly close to succeeding Redknapp.
A pressing concern for Villas-Boas will be resolving the future of Luka Modric, who has been strongly linked with a transfer to Spanish giants Real Madrid.
In other club-related matters, hopes of signing Jan Vertonghen are fading, however, due to a clause in the Belgium defender’s contract with Ajax.
Vertonghen is entitled to 15% of the agreed £9.5million transfer deal under the terms of his deal with the Dutch champions.
Completing a busy day at White Hart Lane was Vedran Corluka’s transfer to Lokomotiv Moscow in a three-year deal.
The 26-year-old Croatia defender, who was loaned to Bayer Leverkusen in January, ends his four-year association with Tottenham after passing a medical.