According to L'Equipe, France Under-21 international Nkoudou has received offers from five teams across England, France and Spain, but will now join Sean Dyche's side after successful negotiations between the two clubs.
While Saint-Etienne, Real Betis, Malaga and Fiorentina were interested in taking him on for the second half of the 2017-18 season, the player feels remaining in the Premier League will benefit him more. He intends to return next season and challenge for a first-team role in north London.
That feeling is shared by Tottenham with club chairman Daniel Levy refusing to give Burnley the option to make the deal permanent in the summer. Both he and manager Mauricio Pochettino are convinced the player has more to offer at Spurs.
Nkoudou is still to start a Premier League game for Tottenham, with his only start this season coming in the Champions League victory over APOEL. He is likely to get those opportunities with the Clarets however, with Burnley in desperate need of cover for Robbie Brady, who has undergone knee surgery following an injury suffered in a fixture against Leicester City in December and now faces a "substantial time out of action".
Kyle Walker-Peters is another Spurs youngster who has been linked with a loan move away from the club during the mid-season window, while Cameron Carter-Vickers and Josh Onomah, on loan at Sheffield United and Aston Villa respectively, could be considered for early returns to their parent outfit.
In late December, Pochettino said no final decisions had been made yet over the trio. "We have still not decided anything about Cameron, Josh or Kyle. I think we are still waiting and we will see what happens in the next few weeks. We have until the end of January to decide."