The deal for Hoffenheim’s Icelandic midfielder is worth around £7million.
Sigurdsson, 22, who impressed on loan with Swansea last season with seven goals in 19 appearances, was expected to link up with ex-boss Brendan Rodgers at Anfield.
But former Chelsea chief AVB, who was only appointed as Harry Redknapp’s successor on Tuesday, has moved quickly to bring in the stylish ace.
A Tottenham spokesman said: “We are delighted to announce we have completed the transfer of Gylfi Sigurdsson from Hoffenheim.”
Sigurdsson’s arrival adds to rumours want-away playmaker Luka Modric will be sold, with Manchester United leading the chase.
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