Danjuma scored 16 goals in all competitions for Villarreal last season, helping the Spanish team advance to the Champions League semifinals.
He thought to have reached an agreement with Everton over the weekend, but Tottenham made their move before he could sign the contract.
“As soon as Tottenham came through for me, it was a no-brainer,” Danjuma told Spurs TV.
“It’s a massive club, brilliant coach, brilliant staff, brilliant club, the facilities are obviously unbelievable so for me I’m very excited to be part of the team.”
He joins Harry Kane, Son Heung-min, Dejan Kulusevski, Richarlison, and Lucas Moura as more attacking options for Spurs.
With a 1-0 victory at Fulham on Monday, Antonio Conte’s team, currently in fifth place in the Premier League, closed the gap to the top four to three points.