Spurs have been tracking the 21-year-old Brazil international since last year and have already lodged more than one bid.
The Premier League club did look on course to finalise a deal for Leandro this summer but now it seems he will be staying put.
Internacional had previously suggested that it was 'inevitable' that Leandro would leave, however, they have now confirmed that their prized asset has put pen to paper on a new five-year deal.
"Plaudits must go to president Giovanni Luigi, who did a tremendous effort to keep him with us for this season," said coach Paulo Roberto Falcao.
"This new agreement gives us peace and we can now close the talk of his departure.
"Now Leandro Damiao is at a wage level with the most valued players in the country."
Internacional currently own 70 per cent of Damiao so, unlike some of Brazil's top youngsters, they will indeed have the final say over his future.
Source: Team Talk
Source: Team Talk