Redknapp and agent Paul Stretford spent Wednesday in negotiations with chairman Daniel Levy and it became clear late on that the former Portsmouth boss was close to ending his three-and-a-half-year tenure at White Hart Lane.
The 65-year-old had 12 months left on his contract and is understood to have been unhappy with Levy’s failure to offer him a new three-year deal.
Levy told the Spurs website: “This is not a decision the board and I have taken lightly.
“Harry arrived at the club at a time when his experience and approach was exactly what was needed.
“This decision in no way detracts from the excellent work Harry has done during his time with the club and I should like to thank him for his achievements and contribution.