Croatian midfield dynamo Modric is a reported target of Chelsea and Manchester United, with a string of fine performances last season cementing his place on the wanted list of many top clubs.
With Tottenham failing to secure a Champions League spot for the coming season, Modric made it clear that if an appropriate offer was presented to the club then he would consider a move away from White art Lane, with a switch across London to Chelsea his preference.
However, Spurs chairman Daniel Levy has confirmed that although a bid has been made for the 25-year-old, the Tottenham hierarchy are reluctant to allow their prized asset to leave the club.
Manager Redknapp has backed his chairman’s stance in the transfer saga and has admitted that although Modric is understandably ‘confused’, he believes the midfielder will continue to give his all for the club.
Redknapp told Sky Sports News: "He's OK. He's a great lad, a fantastic boy and a great player. I love him as a fella and everything. We will see what happens.
"He's always been committed to Tottenham. He loves playing here and he's a great player for us.
"It's a difficult situation for him and I understand where he's coming from. We can't kid ourselves, if someone is going to double or treble your wages, it's difficult. But he signed a contract here, we love him here and we want him here.
"We don't want to sell our best players. We are looking to build a team not tear a team to pieces. He's a massive part of that, we need him here, he's a special player for us."
"He's going to remain here, but there is no point me saying he's walked in here today and everything is great, he's happy and he's going to stay. The kid is a bit confused at the moment and it's not been easy for him.
"I'd be telling you lies if I said he's happy and he doesn't want to go and play for whoever wants him - I think there are three or four of the top five that want him. But we want to keep him here.
"The chairman wants to keep him, I want to keep him and we need him if we're going to progress. We need him and, as he said to me this morning, we need to add to him."
It is believed that the club may struggle to persuade players of a similar caliber of Modric and Rafael van der Vaart to White Hart Lane after the club failed to secure a Champions League spot last season, but Redknapp has admitted that funds have been made available to him.
Asked if he had spoken to Levy about possible targets, Redknapp said: "We had a chat. It's difficult. We are looking to improve and we need to. It's no good people talking about Champions League football if we don't improve the team, we know that. He's as keen as anybody to do that, but it's not easy.
"We have to make way with one or two going first, we are just a little bit overloaded in one or two areas, but if we can do that we will look to bring one or two in.
"We know what we need and it won't be for the lack of effort. Daniel always does it in the end, we always spend money here and improve the team and he will do it again this year."
