Spurs chairman Daniel Levy insisted on Wednesday that Modric, who is 12 months into a six-year contract, would not be leaving this summer after holding showdown talks with the wantaway Croatian at White Hart Lane.
Modric has made it clear that he wants to swap Tottenham for Chelsea, who had a ?22million bid for the player rejected three weeks ago, but Levy is adamant the 25-year-old is not for sale at any price.
The Tottenham chairman is aware of the vow he made to fans on the last day of the season that none of the club's top players will be sold and he is also aware of Redknapp's desire to hold on to such an important player in his squad.
Levy has played hardball with the player since, denying him the move he wants, but Modric is thought to be unwilling to hand in a transfer request to push through a move.
Redknapp came face to face with Modric on Thursday morning at the club's training base for the first time since the former Dynamo Zagreb man publicly declared his desire to move to Stamford Bridge.
The 64-year-old emerged from the club's training ground in Chigwell, Essex, later to admit the playmaker is in a daze about his future.
"He's walked in and is happy, but the kid's a bit confused at the moment. Other teams want him but we want him here and I want to keep him," Redknapp told Sky Sports News.
"He loves playing here. It's a difficult situation for him and I understand where he's coming from. We can't kid ourselves.
"He signed a contract here, we love him here and want him here. We don't want to sell our best players.
"He's a special player for us. We want him here and need him here. "
Modric scored seven goals in the last two years for Tottenham, but his creativity and battling qualities in the middle of the park mean he is arguably the most important player in Redknapp's squad.
Spurs' failure to finish in the top four last year means Redknapp cannot offer Modric the Champions League football that Chelsea, or the other team reportedly interested in him - Manchester United - can.
Redknapp thinks the key to keeping Modric at White Hart Lane could be to persuade him the club are serious contenders for silverware by adding a couple of big name signings over the summer.
The manager has so far only been able to add veteran goalkeeper Brad Friedel to the ranks, but he has also been linked with a number of big-name players on the continent such as Diego Forlan and Giuseppe Rossi.
"We need to add to him (Modric)," Redknapp added. "I've had a chat with Daniel Levy and we're looking to improve - we obviously need to. But it's not easy. Daniel has always spent money here and he'll do it again this year."
Any pursuit of new signings may have to wait until Redknapp shifts some of the dead wood in his squad on this summer.
Robbie Keane and David Bentley are both back in training this week after failing to secure permanent deals at the clubs they were on loan with last season.
They are just two of up to six Spurs players who Redknapp wants to move on before the season starts.
"We have to make way with one or two going first," Redknapp said.
"We are overloaded in one or two areas and if we can do that we will bring one or two in."
Source: Team Talk
Source: Team Talk