Black Cats boss Martin O'Neill has confirmed that the 22-year-old is to remain at the Stadium of Light.
"The loan deal contained an option for Spurs to recall Danny this month, but they had to exercise that option by 17th January," he said in the Sunderland Echo.
"I'm pleased to say that they haven't done so, so he will be with us for the rest of the season and that is really good news.
"I know that Andre Villas-Boas said last month that he intended to let him stay here for the season and I never felt he could change his mind - unless, of course, they had injury problems. But at least we now know for sure.
"Danny has done very well for us in the first half of the season and hopefully he will continue where he left off when he recovers from his hamstring injury."