Villas-Boas has told L'Equipe he was tempted by an approach from Paris Saint-Germain.
"PSG's approach to me has been made public," said Villas-Boas.
"But I wanted to stay a second season at Tottenham to build on the work from last year and to spend two seasons managing the same club for the first time in my career.
"The club have backed me on several issues, for example by taking on Franco Baldini as technical director. I wanted to continue the project here."