While the transfer fee remains undisclosed, Preston confirmed it is almost three times higher than their previous record outlay for Callum Lang earlier this year.
The 21-year-old midfielder impressed during a loan spell at Deepdale last season, scoring eight goals in 45 league appearances.
Devine joined Tottenham from Wigan Athletic in 2020 and made history as the club's youngest-ever goalscorer when he scored in an FA Cup tie against Marine aged just 16.
“From the end of last season going into the summer, it was always a priority in terms of where I wanted to be. It took its time, but I'm delighted it's gone through,” he told club media.
“From the first minute I came here until my last minute of last season, I absolutely loved it. The fans, staff, players, everyone around the place made me feel so welcome.”