Spurs had attempted to trigger the midfielder’s release clause earlier this month, but could not get the deal over the line.
Forest took issue with the situation, filing an official complaint with the Premier League about the nature of Spurs’ approach, which they considered illegal.
The saga has now been brought to an end, though, as the 24-year-old has committed his future to the Midlands club, extending his stay at the City Ground through 2028 in what the club has described as a ‘record deal’.
“The support from the fans, my teammates, and everyone around the club has been unbelievable. I believe in what we're building here – and with the backing of Mr Marinakis and the enormous ambition he has, I want to be part of making something special. I’m excited for what’s to come."
Forest owner Evangelos Marinakis described Gibbs-White as a ‘special’ player: "Morgan is a special player – not just in terms of talent, but character and mentality. He represents everything we want this football club to be: he is a winner, talented, ambitious, fearless, and proud.
“There was significant interest from various clubs, but we were determined to build our future with Morgan at the heart of it. I promised our fans we would not only compete, but grow stronger and stronger every season. Today is another big step in that journey."