The former Middlesbrough and Nottingham Forest man has unexpectedly forced his way back into Ange Postecoglou's plans this season, scoring his first goal for the club in September's 2-1 EFL Cup win over Coventry City.
Spence has also made three appearances in the Premier League campaign, most recently coming off the bench for the second half of the 3-0 thumping of Manchester United to replace the injured Destiny Udogie.
The 24-year-old was not due to become a free agent until the summer of 2027 anyway, but having got into Postecoglou's good books, he has now signed a one-year extension at the Tottenham Hotspur Stadium.
Spence's new contract comes just a few months after an exit from North London appeared inevitable, as he had failed to make an impression following his arrival from Middlesbrough in the summer of 2022.
Spence extends Tottenham stay after three loan spells
The former England Under-21 international had previously shone for Nottingham Forest during a loan spell in the 2021-22 season, helping the Tricky Trees earn promotion to the Premier League, but he could not win over Antonio Conte upon his arrival.
Spence spent the second half of the 2022-23 campaign on loan at Ligue 1 club Rennes, and he was not integrated back into the first-team squad during Postecoglou's first campaign either.
As a result, the defender joined Leeds United on a temporary basis in the summer of 2023 before a switch to Genoa for the second half of last season, and a permanent move to Italy was expected to materialise.
However, Spence's proposed transfer to Serie A fell through, apparently due to Genoa's refusal to stump up Tottenham's asking price of around £5.9m, and he remained at the club after the transfer window slammed shut.
Spence was also omitted from Spurs' Europa League squad, further suggesting that his future did not lie in North London, but he has now made 10 appearances for the Lilywhites and has started to prove his worth as a versatile option.
Could Spence extension trigger Ben Davies exit?
Spence sticking around for the long-term not only demonstrates Postecoglou's faith in the youngster, but it could also mean that Tottenham are planning for life without the long-serving Ben Davies.
The Welshman - who has been at the club since 2014 - is out of contract at the end of the season, and there is a consensus that the 31-year-old will be leaving for free when his terms run out in 2025.
As Spence has started to glean experience on the left-hand side, having initially made a name for himself as a right-back, he could very well act as a natural replacement for Davies, serving as Udogie's backup.
The Englishman's renewal also all but guarantees that Sergio Reguilon will be leaving at the earliest available opportunity, although the Spaniard has been largely frozen out and was always expected to head for the exit door in 2025.
Such is Spence's versatility that the 24-year-old could be an option to fill in for Pedro Porro on the right-hand side of the backline too, but the young Archie Gray can also deputise for the Spaniard in that role.