His decision to stay won him the immediate gratitude of the Pompey board who will up his deal to fend of Newcastle owner Mike Ashley's billions.
Redknapp's new £3 million-a-year package still leaves him a long way short of the £4m a year Newcastle were willing to pay. But the Pompey boss is delighted with the pay rise after 24 hours of soul searching.
A source close to Redknapp said: "It didn't come down purely to cash with Harry. If it did, he would have gone to Newcastle.
"Portsmouth made him feel wanted, they've given him a pay rise and he knows there will be money to spend during the rest of the transfer window. It was a case of Portsmouth putting their arm round him and making him feel wanted."