Reports say the fee for Yedlin is $4 million (£2.4m) and Tottenham confirmed he will stay with Seattle on loan until the end of the MLS season before joining up with them ahead of the 2015/16 season.
Yedlin has signed a four-year contract with Spurs.
Yedlin was a surprise inclusion in Jurgen Klinsmann's USA World Cup squad but impressed with some energetic displays off the bench.
The 21-year-old has been linked with AS Roma since the World Cup finished but Tottenham have now won the race for his services.
"I’m very excited to come to the Premier League and challenge myself against some of the best players in the world," he said.
"The facilities are the best in Europe, if not the world. It’s a great team. I’m very excited. It’s a great team with a new coach and a style that suits the way I play. That’s a big reason I made the decision.
"I’ve talked to Jurgen Kilnsmann a lot about this move and he supports it, which was one of the big reasons behind the decision.”
Capped seven times by the USA, Yedlin became the first rookie to play in the MLS All-Star for 10 years last season, a feat he repeated this campaign.
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