Harry Redknapp is in talks with Tottenham over a compensation package as he prepares to leave the White Hart Lane club, Press Association Sport understands.

Redknapp and his agent Paul Stretford have been in negotiations about his future with Spurs chairman Daniel Levy on Wednesday.

It is understood the two parties are close to agreeing on a package that will see Redknapp’s three-and-a-half-year tenure end.

The 65-year-old has 12 months left on his contract and is understood to have been unhappy with Levy’s failure to offer him a new three-year deal.

The reports of Redknapp’s exit are also being carried on the BBC and Sky.

These suggest Redknapp is leaving because of failure to repeat his feat of leading the team into the Champions League.

The decision would cap a difficult few months for the 65-year-old Englishman, in which he missed out on the England coaching job and Spurs failed to reach Europe’s top club event despite holding a 10-point lead over their nearest rival at one stage of the Premier League season.

Redknapp joined Tottenham in October 2008 with the team hovering above the relegation zone. By May 2010, Spurs had qualified for the Champions League for the first time.