The 24-year-old former England U21 star impressed the Argentine in pre-season training and has earned a deal that will keep him at White Hart Lane until 2019.
A statement on the club's official website read: "We are delighted to announce that Danny has committed his future to the club.
"Signed from Leeds United in July, 2007, Danny made an immediate impact on his full debut for the club in April, 2010 with a spectacular strike to open the scoring in a north London derby victory against Arsenal.
"He spent a successful loan spell with Sunderland during the 2012-13 season, culminating in him being named their young player of the season.
"Having started out as a winger, Danny has since established himself as a left-back and has made a total of 59 appearances for us to date, scoring three times."
Rumours suggested Rose would be on his way out of north London following the arrival of the promising Ben Davies from Swansea for an undisclosed fee, but Pochettino is encouraging a battle between the two for the starting role.
He said: "Ben Davies is important for us because he's good competition for Danny Rose on the left side. He's a young player but he has good experience in the Premier League."
Tottenham kick off their Premier League campaign with a trip to London rivals West Ham on August 16.