Dixon's career was on the skids after a series of knee injuries while on the books at Spurs, but West Ham staff worked with the Irish youngster to get him fit enough to warrant a three-year contract offer - which he signed yesterday.
Duxbury told whufc.com: "This signing is a testament to our medical and technical departments for all the work they have put in to get Terry to this point. He has worked very hard in the past few months and we have all been impressed with his determination to start playing again. His talent is undoubted.
"We know that Tottenham felt they had reached the end of the road with Terry but we are hopeful he can yet prove himself and build a successful career. He is certainly in the best place to do that and I am sure if anyone can get the best out of him it will be Gianfranco Zola and his coaching staff."