The 34-year-old joined Spurs from Blackburn Rovers in January on a short-term deal, making five Premier League appearances for the North Londoners.
Harry Redknapp’s departure as manager at White Hart Lane subsequently put paid to tentative plans for the defender to receive a new contract in the summer and Nelsen will now return under the guidance of QPR boss Mark Hughes.
Hughes recruited the veteran during his spell as Blackburn manager from Major League Soccer club DC United.
And Nelsen admitted the chance to work with Hughes again made the opportunity impossible to turn down.
I owe him pretty much everything. He gave me my chance," Nelsen told Fairfax.
"That was a big factor. I know Mark and his staff really well.
"They all really helped me when I was first over here in England, so it's nice to go full circle towards the end of my career.
“Hopefully, I can still help them out. They've got a lot of ambition - it seems like it's going to be a good fit."
Nelsen has 45 All Whites caps, scoring six international goals in the process.