The French midfielder played over 200 games in all competitions for the Cottagers after joining from Lyon at the start of the 2001-02 season. He scored 32 goals in 160 starts in the Premiership.
Capped at youth level by France, the 26-year-old came through the junior ranks at Lyon before helping them to the French League Cup in 2001 and UEFA Cup qualification.
Martin Jol commented: "Steed is a skilful, versatile midfielder of real quality.
"He is a player we have always admired and we are delighted he has come to us, there were a number of other clubs interested. He is a player who can cover the left, centre and right midfield positions and will work well within our system."
Steed is currently out of action with a groin problem and is expected to be out for around 10 weeks.
Steed said: "Tottenham is a big Club and its a fantastic new challenge for me. Its an excellent squad and Im looking forward to joining.
"I will be working hard on my recovery and rehabilitation in order to be ready to play as soon as possible."
The Club is delighted to announce that we've reached agreement with Fulham for the transfer of Steed Malbranque.