The 25-year-old Belgium international will go into the Spurs squad for Saturday's home game against Norwich.
"Following two full seasons at Craven Cottage, the club would like to thank Mousa for his contribution and wish him well throughout the rest of his career," said a Fulham statement.
Fulham could bring in Kieran Richardson from Sunderland as a replacement.
Black Cats boss Martin O'Neill confirmed the Wearsiders have accepted an offer for the 27-year-old former Manchester United man.
Dembele, who joined Fulham from Dutch side AZ Alkmaar for £5m in 2010, missed their Capital One Cup defeat at Sheffield Wednesday on Tuesday night.
Tottenham later confirmed on their Twitter account: "We are delighted to announce that we have reached agreement with Fulham for the transfer of Mousa Dembele."
Dembele alse tweeted: "Happy to confirm I signed a new contract with Tottenham FC."
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