Current director of football Pleat, who has been caretaker manager since the departure of Glenn Hoddle in September last year, will step down from his role at the end of July.

Chairman Daniel Levy said Arnesen’s appointment is part of a new “Continental structure” – expected to include a new first-team coach – which is vital if Spurs are to become a force in the Premiership.

“I have spent a considerable amount of time, and spoken to many heads of major European clubs and international managers, assessing what Tottenham needs to change in order to lay the best foundations for success.

“For many years now, not just for the time I have been here, this club has failed to achieve a league position commensurate with the financial investment that has been made in the team.

“Quite clearly we are operating in an international market and it is vital that we put in place an appropriate management infrastructure and expertise to achieve our aspirations.

“It is important that we have stability and a consistent strategy for first team and youth development.

“I firmly believe that this can be best served under a new Continental structure and that Frank Arnesen is immensely qualified to oversee this for us.

“This decision is the result of a major review and it would be wrong to align it simply to this last season when David took over as caretaker manager.”

Levy paid tribute to Pleat for his work during a long association with the north London side, adding on the club’s official website, www.spurs.co.uk: “I should like to thank David for his contribution to our club over the years.

“I think it is too easy in the business of football to forget to give credit where it is due and David has brought young players to this club who have gone on to establish themselves in the first-team squad.”

Pleat said: “I have enjoyed working at the club and I wish everyone much success in the future.

“I particularly hope that the younger element can go on to major achievements. They represent an excellent foundation for the club. I am sure that Frank Arnesen will prove a most successful appointment.”

Arnesen said: "I am delighted to get the opportunity to work for a big club like Tottenham and in the most exciting league in the world.

“A club of this stature should be competing regularly for honours and that is what we shall strive to achieve.

“I know the club because I played for Anderlecht in the UEFA Cup final at White Hart Lane in 1984 and was beaten on penalties. I should say though that I left the pitch after 80 minutes when we were still 1-0 up!”

In a statement to the Stock Exchange this morning, Spurs revealed Arnesen will “be in charge of all matters relating to the football side of the club and the recruitment of key personnel and have responsibility for developing and implementing youth, scouting, medical and international policy.

“Additionally, he will oversee the trading of players in consultation with the first-team management.”

Arnesen, 47, is a former Denmark international who has been with PSV for more than 10 years, during which time the club won 12 major domestic honours.

He is fluent in five languages and has worked with coaches such as Dick Advocaat, Bobby Robson and Guus Hiddink.

Levy added: “Frank’s knowledge of the international transfer market is excellent and no club can operate without that in today’s market place.

“He has a proven track record of working successfully alongside some of the world’s top managers. The appointment of our first-team management progresses as before and will be announced in due course.”