The Croatian has been the subject of interest from Chelsea this summer.
Redknapp said: “He’s walked in today 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. 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.”