Redknapp, who has been in charge at White Hart Lane for almost four years, was reportedly not offered a new deal by Spurs, with Everton boss David Moyes the front-runner to succeed the 65-year-old.
Redknapp is understood to have held talks with Spurs chairman Daniel Levy on Wednesday, with a compensation deal now being discussed.
An official announcement is now expected to be made on Thursday.
The former Portsmouth boss was heavily linked with the England manager’s job before the Football Association opted to appoint Roy Hodgson last month.
Redknapp guided Tottenham into their first-ever Champions League campaign in 2010.
Despite Spurs finishing fourth last season, the Londoners missed out on a Champions League place as a result of Chelsea winning the trophy.
• Started out as a player at West Ham, where his team-mates included future England World Cup-winning captain Bobby Moore. A midfielder, Redknapp scored seven goals in 149 appearances before joining Bournemouth in 1972, where he also played over 100 games.
• He moved to America via Brentford in 1976, spending three years in Seattle where he also worked as assistant coach. Held the same post to Moore at non-league Oxford City and then went to Bournemouth, where he was appointed manager in late 1983. Masterminded an FA Cup shock against holders Manchester United in January 1984.
• He returned to West Ham in 1992 as assistant to Billy Bonds, whom he succeeded as manager in 1994. He gave first-team chances to the likes of Frank Lampard, Rio Ferdinand and Joe Cole during his seven years in charge.
• Redknapp was appointed Portsmouth’s director of football in 2001, and stepped into the manager’s chair the following year.
• He took them into the Premier League in 2003 and, after a year in charge of local rivals Southampton, returned in December 2005, winning the FA Cup in 2008.
• Struggling Tottenham turned to Redknapp that October and he steered the team away from relegation trouble, also reaching the League Cup final.
• In 2009-10 he led the club to fourth position in the Premier League, earning a new contract until 2013.
• He led Spurs to a fourth-place finish in the Premier League in 2011-12 but the Londoners were forced to settle for a Europa League spot as a result of Chelsea’s Champions League triumph.
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