Sherwood had no experience at leading a club prior to assuming first-team duties of Spurs last week in the wake of Andre Villas-Boas’ sacking.
Yet after one defeat and a win, the Spurs board had no trouble in supporting Sherwood to lead them further up the EPL table.
The north London club had been expected to at least be challenging for a top-four finish after a heavy outlay over the summer, yet they lie seventh in the tables.
Villas-Boas was dismissed a day after a demoralising 0-5 home defeat against Liverpool.
Tottenham chairman Daniel Levy admitted he was loath to dispense with the services of Villas-Boas, but he has given his backing to Sherwood, who made nearly 100 appearances for the club as a midfielder from 1999 until 2003.
Levy told the club’s official website: “We were extremely reluctant to make a change mid-season, but felt we had to do so in the club’s best interests. 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.”