Jenas the "Goldfish", who began his career at the City Ground, returned to the east midlands on loan last month but that deal expired last weekend with the Reds' 4-1 victory at Barnsley, where Jenas scored Forest's final goal.
Although Jenas has yet to start a game for Sean O'Driscoll's side, making four substitute appearances so far, he was keen to remain with his hometown club.
However, talks between Forest and Spurs this week have resulted in his stay being extended until January 2, 2013.
That means the 29-year-old will be available to Forest for another 13 league matches.
Jermaine Jenas: "It's what I wanted.
"I've enjoyed it and it's been great to be back home.
"The initial month loan was a weird one for everybody involved and a tough one for the manager to deal with because he wanted my qualities on the pitch.
"But at the same time he didn't want to rock the boat too much with what he already had - and what we already have got is a lot of quality in midfield.
"The lads have been playing well so fair play to the gaffer because he has played it well."
Jenas moved to Tottenham from Newcastle for £7million in 2005.