No details of the fee were revealed but the previous club record was set when Denmark international striker Andreas Cornelius moved from FC Copenhagen for 7.5 million pounds on July 1.
Caulker, 21, is the fourth signing by manager Malky Mackay since the Welsh club won promotion to the top flight in April following a 51-year absence.
"I'm delighted to be here and excited for this fresh challenge," said Caulker, who scored for England against Sweden in his only international appearance.
"I thank Tottenham for everything they've done for me, having been there since I was a kid. But I'm here to back myself up now and show what I can do. This is a fresh start, a new chapter and I'm here to kick on."
Caulker spent a season on loan with fellow Welsh and Premier League club Swansea City in 2011-12, playing 26 times.
(Reporting by John Mehaffey in London; Editing by Pritha Sarkar)
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