Nkoudou, 22, joined Spurs from Olympique de Marseille in 2016, after scoring 10 goals in 41 games in the 2015/16 season for the Ligue 1 side, having started his career at Nantes.
The left-sided player has made 23 appearances for Tottenham, including six this season, appearing twice in the Champions League but just once in the Premier League.
"I knew he (Sean Dyche) is a big manager who likes young players and players who go forward, so it suits my character to come here and I am happy to work with him," Nkoudou said.
(Writing by Ken Ferris; editing by Nick Mulvenney)
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