The fee is undisclosed, though the Championship club have said it is "almost three times" the fee they paid for Portsmouth forward Callum Lang in February, which was reported to be around £2million. Devine, 21, scored eight goals in 45 league appearances while on loan with the Lilywhites last season, form that persuaded Preston to trigger the option to sign him permanently.
He came through Wigan's academy before joining Spurs in August 2020, and remains the club's youngest-ever goalscorer after netting in the FA Cup at non-league Marine aged 16 years and 163 days back in January 2021.
While Preston have not put a figure on the deal, it has been widely reported elsewhere that the fee is in the region of £6million, comfortably eclipsing the £2.1m the club paid for Milutin Osmajic, their previous record signing.
Devine spoke of his delight at completing the permanent switch to Deepdale.
"From the end of last season going into the summer, it was always a priority in terms of where I wanted to be. It took its time, but I'm delighted it's gone through," he said.
"From the first minute I came here until my last minute of last season, I absolutely loved it. The fans, staff, players, everyone around the place made me feel so welcome."
Manager Paul Heckingbottom was thrilled to get the deal done after a summer of negotiations.
"I'm really pleased to get it over the line," he said. "A lot of people have worked hard at it, and Alfie made no secret of the fact that he enjoyed his time here and wanted to play here. We think that it's good business, not only in the short term and helping us get results on the pitch, but it's also really good business for the football club as well."
Preston chief executive Peter Ridsdale thanked those who made the club-record deal possible.
"I would like to go on record to thank the Hemmings' family for the unbelievable financial commitment in allowing us to get this deal over the line, in addition to the investment in the new hybrid Deso pitch at Deepdale," he said.
"I would also like to thank Tottenham Hotspur for the way in which they have handled this transfer. It has been a pleasure working with everyone connected with Tottenham Hotspur Football Club."