Pochettino's side will finish as top flight runners-up for the first time since 1964 if they beat Newcastle United on the final day of the season on Sunday, having pushed Leicester City hard for the title.
"We have seen Mauricio bring a tremendous spirit and ethos to our club and embrace the attacking style of play with which we have always been associated," chairman Daniel Levy said in a statement.
"He has built a squad of youth and experience and this season we have seen football played at the highest level, quite sublime at times."
Former Argentina defender Pochettino joined Tottenham in 2014, having impressed at Southampton, and has created a fast and powerful side with a backbone of young English players such as Harry Kane, Eric Dier and Dele Alli.
Pochettino was photographed having lunch with former Manchester United manager Alex Ferguson this week, prompting rumours he could be a target for the Old Trafford team.
"Everyone at the club is delighted he has agreed an extended contract and we all look forward to working with him in the coming seasons," Levy said.
"I know he is as ambitious for our club as we all are."
With a bright young squad at his disposal and a new stadium on the way, Pochettino says everything is in place for Tottenham to maintain their improvement and challenge for honours.
"I could not be happier to sign this new contract. It was an easy decision for my coaching staff and I because we can feel the appreciation of everyone here, there is no better place to be right now," said Pochettino who will lead Tottenham in the Champions League next season.
"This club has all the ingredients to continue to challenge at the very top in both the Premier League and in Europe and we want to be here to be a part of what I believe will be a special period in the club's history."
Pochettino's coaching staff of Jesus Perez, Miguel D'Agostino and Toni Jimenez have also agreed contract extensions.
(Reporting by Martyn Herman; Editing by Tony Jimenez)
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