The 21-year-old Spurs striker earned his first England call-up on Thursday, having scored 16 Premier League goals this season.
Sherwood, now in charge of Aston Villa after a stint at Tottenham from December 2013 to May 2014, said people at the London club wanted to get rid of Kane.
The Villa boss said he was behind the decision to keep Kane at the club.
"It's great. I resisted the temptation to get rid of him last January because perhaps he wouldn't be the star he is for Tottenham," Sherwood said.
"There were people at the club who wanted to bring in another striker and sacrifice Harry Kane. I wouldn't allow that to happen. He got his opportunity and now he's bouncing forward."
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