The 44-year old has been appointed as Spurs boss until the end of the 2014/15 season, replacing Andre Villas-Boas, and Levy was in a positive mood after the former Blackburn Rovers midfielder stepped up from the technical co-ordinator role.
"We were extremely reluctant to make a change mid-season but felt we had to do so in the club's best interests," he said.
"We have a great squad and we owe them a head coach who will bring out the best in them and allow them to flourish and enjoy a strong, exciting finish to the season. We are in the fortunate position of having within our club a talented coach in Tim Sherwood.
"We believe Tim has both the knowledge and the drive to take the squad forward."
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