Werner, who was struggling for game time at RB Leipzig prior to the move, is happy to remain in England.
A Spurs statement read: "We are delighted to announce an agreement for Timo Werner to rejoin us on loan from RB Leipzig for the 2024/25 season, with an option to make the deal permanent. Signed on loan from the Bundesliga side in January, the German international forward was a regular in Ange Postecoglou's team in the second half of last season.
"With Heung-Min Son on international duty and Dejan Kulusevski injured, Timo was straight into action, starting and setting up Rodrigo Bentancur's goal in our 2-2 draw against United on his debut at Old Trafford within five days of joining us.
"Timo, 28, went on to make 14 appearances for us in 2023/24 - 13 in the Premier League, one in the FA Cup. He contributed goals against Brentford and Villa and three assists in those 13 appearances in the Premier League before a hamstring issue ended his season early in May."