The 37-year-old's last deal was due to expire this summer and it had been thought that he could either leave Spurs or retire.
Harry Redknapp has moved quickly to make sure that the Italian stays at the club for another year though to provide competition for number one Heurelho Gomes.
Cudicini arrived at Spurs from Chelsea in January 2009 but has failed to remove Gomes from his first-team spot.
Cudicini has played 25 games for Tottenham in total, including a substitute appearance in the San Siro when he came on to face Inter Milan in a 4-3 defeat to the Italian giants after Gomes' early dismissal.
The former Lazio goalkeeper started the club's last three matches of the season after Gomes suffered a back injury in training.
Spurs have been linked with moves for Brad Friedel and Ben Foster this summer, while third-choice stopper Stipe Pletikosa is expected to return to Spartak Moscow after an unsuccessful loan spell with the Londoners.
Source: PA
Source: PA