Tracey signed from non-league Ebbsfleet Town in Janaury 2016 and has become a regular for Tottenham's under-23s.
It is an apparent reprieve for the youngster, with Football London reporting in early May that Tracey was 'expected to move on'.
Either that report was simply inaccurate, or there has been a change of heart at Tottenham over Tracey's future.
Whichever the case, a two-year deal is a terrific outcome for the 20-year-old.
Originally billed as an attacking midfielder when he signed, Tracey has played a variety of roles for Tottenham's under-23 sides since joining.
This past season he played up front, briefly, on the left wing, and on the right.
It is right wing where he appeared to settle, selected in that position of all of his appearances in 2018.
From a production perspective, he needs to show some more improvement to catch the eye, if he is to start making an impression on the first team.
Tracey scored only one goal this past season for the under-23s, against West Ham, and provided three assists.
It is unclear currently if he will get a chance to travel on Tottenham's pre-season tour of America, or if a loan move is going to be an option during the upcoming season.
Whenever or wherever his opportunity comes, Tracey must step up and seize it.