The American veteran - who turned 43 last month - joined Tottenham in 2011, but has been usurped in the starting XI over the last two years by France international Hugo Lloris.
Friedel made just nine appearances in all competitions last season, with his only Premier League outing coming in a 1-0 home defeat to Newcastle United in November after Lloris suffered a head injury against Everton in the previous game.
The former United States international's contract was due to expire at the end of June, but he is now set to remain at White Hart Lane for one more season under new head coach Mauricio Pochettino.
Alongside his playing role, Friedel has also been made a club ambassador, with much of his responsibilities centred on promoting Spurs in his homeland.
A club statement read: "Brad Friedel has put pen to paper on a new one-year contract with the club, which will also see him become a club ambassador with a particular focus on our work in his native United States.
"Our goalkeeper's ambassadorial role will have a wide-ranging remit that will include greater involvement in our global coaching programme and engaging with our 30 supporters clubs from across North America as we continue to increase our global presence and bring our international fanbase closer to the club."
