Doherty moves to North London from Molineux for a fee of £15m and joins goalkeeper Joe Hart and Pierre-Emile Hojbjerg in becoming Jose Mourinho’s third summer signing.
Doherty’s arrival will help stifle the loss of Kyle Walker-Peters, who has joined Southampton and provide competition for Serge Aurier at the right back spot.
"We are delighted to announce the signing of Matt Doherty from Wolverhampton Wanderers," Tottenham confirmed on their official website.
The 28-year-old has been at Wolves for the last 10 years, making over 300 appearances for the club.
He made 50 appearances in all competitions and scored seven goals last season as Nuno Esperito Santo’s men finished seventh in the Premier League and reached the quarterfinals of the Europa League.
"I'm very proud to be joining such a big club," said Doherty at his unveiling as a Spurs player.
"[They have] the best stadium in the world and possibly the best training ground in the world.
"Once I knew there was interest, it was a no-brainer for me.
"My time at Wolves was fantastic - I haven't got a bad word to say about the whole club at all. I just feel like coming here is going to take my game and my career to the next level."
Doherty will wear the number two jersey at his new club.
Tottenham will kick start their Premier League campaign with a home game against Everton on September 13.