Rangers originally signed the winger on loan in the summer of 2015.
Oduwa joined Scottish Championship club Rangers on loan from the Premier League side in the summer of 2015.
The 19-year-old winger was expected to remain at the Gers for the 2015-16 season, but he has returned to his parent club.
Johnstone, who played for the Gers in the 1970s and 1980s and is a club legend, believes that it was best for the youngster that he went back to the North London outfit.
“Mark (Warburton) will have spoken to Spurs and explained that it just hasn’t been happening for Nathan recently,” the former Scotland international has written in The Glasgow Evening Times.
“Other players have been on form and didn’t deserve to drop out of the team so it was hard for him to get in the side. It was better for the player that he went back to Spurs and we will see what the future holds for him now.”
Oduwa was popular among the Ibrox faithful due to his talent and the tricks he showed on the pitch.
The youngster made 19 appearances for Rangers, but his last match for the Glasgow giants was back on December 19 when he featured against Falkirk.
It remains to be seen what the highly-rated youngster now does - whether he is drafted into the Tottenham first team or whether he is sent out on loan again.