Spanish giants Barcelona and Real Madrid are among the clubs to have been linked with a move for the Wales international, who has emerged as one of the Premier League's standout players over the last two years.
His future at Tottenham had also been in doubt after the team failed to qualify for next season's Champions League.
However, Bale said: "I love the club and the fans and I want to play my part in trying to get us back into the Champions League â€" where we belong."
Tottenham managed to keep hold of one of its two biggest assets, along with Croatia midfielder Luka Modric, despite not having a manager in place following the departure of Harry Redknapp this month.
Bale was named 2011 Player of the Year by his peers in the Premier League and also was included in UEFA's Team of the Year last year.
"The club is progressing and I want to be a part of that, so it was great to get the deal done," said Bale, who joined Tottenham from fellow English side Southampton in 2007.
By scoring nine goals, Bale played a key role in helping Spurs finish fourth in the league last season.
That would have been good enough for a place in the qualifying stage of the Champions League, only for the team to miss out on Europe's leading club competition after Chelsea won the trophy against all odds, beating Barcelona in the semifinals and then Bayern Munich in the final.
That earned Chelsea England's fourth and final Champions League spot, along with Manchester City, Manchester United and Arsenal.
The Champions League was where Bale first drew the attention of a worldwide audience, with two dazzling displays against then-defending champion Inter Milan in the group stage in the 2010-11 competition.
He has now established himself as a winger, having started out as a left back, although he was sometimes used by Redknapp in a floating midfield role last season.
