Paratici had resigned as Spurs' managing director of football in April 2023 after an appeal against the ban over his role in transfer deals and finances while at former club Juventus was rejected by Italy's top sports body.
Paratici had lodged his appeal in Italy after governing body FIFA extended the ban imposed on him by the Italian Football Federation (FIGC) but was forced to serve the ban. He and Juventus had both denied wrongdoing.
Spurs said Paratici, who had been working with the club as a consultant for many months, will partner with Johan Lange, who was promoted to also become sporting director.
"I'm delighted to be returning to a club that I love... I now look forward to returning to London and joining the team full-time," Paratici said in a statement.
"I'm convinced that working in partnership with Johan we can build a special future for the club and our supporters."
Spurs are also on the lookout for a director of football operations to support Paratici and Lange.
Spurs face Aston Villa on Sunday, a game you can follow with Flashscore.