The Tottenham manager is keen for Modric to remain a part of his plans for the coming season, despite the Croatian playmaker admitting that he wants to complete a move across London to Chelsea.
The Blues have already had two bids for Modric rejected by Tottenham chairman Daniel Levy but Redknapp has now hinted that he could be prepared to allow the midfielder to leave to enable him to strengthen his squad before the transfer window shuts at the end of the month.
Redknapp, quoted in a series of national newspapers, said: "We've got two options with Luka. Either we keep a fantastic player or we sell him, get the money and bring in four players and have a better team.
"I want him to stay but if he's going I want the opportunity to get other players in."