Peter Storrie has rejected claims that Portsmouth have become a selling club and that they had to allow Harry Redknapp to join Tottenham Hotspur, for a fee reported to be £5 million, in order to survive. The Portsmouth chief executive said that the money paid by Tottenham was regulation compensation as laid down in any manager’s contract.

Storrie, a close friend of Redknapp, said last night: “Compensation is only agreed once someone has agreed to go somewhere. You cannot agree the figure first unless you want to allow the club a discounted price.

“You can always do that, but obviously I was not going to. If they wanted Harry, they had to pay what was in the contract. I think people are muddling that up between ‘selling’ and written-down compensation.

“People should also remember that, in the summer, we sold Sulley Muntari for a club-record fee of £12 million and Pedro Mendes. But we bought Peter Crouch and Younès Kaboul and, on transfer deadline day, we turned down two big bids for Lassana Diarra and Jermain Defoe.

“So let’s get this cash thing in perspective. Sacha [Gaydamak, the owner] has always said the same thing. He finances the club but he is a businessman and if the right offer comes in, he will take that offer. If not, he will continue to fund the football club.”

Storrie, who first spoke with Redknapp on Saturday, the day after Tottenham’s initial approach, revealed how his friend, who had a contract until 2011, agonised over the move to White Hart Lane. “He changed his mind several times,” Storrie said. “That was how hard it was for him.

“He has always had a desire to manage a big club with a big stadium and a fantastic history. I understand that. In the end, he said he wanted to take it. He’s done a fantastic job and he will be a difficult act to follow.”

Sam Allardyce, the former Newcastle United manager, is the bookmakers’ favourite to succeed Redknapp, while Avram Grant, the former Portsmouth technical director and Chelsea manager, and Alan Curbishley, the former West Ham United manager, are also in the frame.

Tony Adams, Redknapp’s former assistant, and Joe Jordan, the first-team coach, will pick the side for the match against Liverpool at Anfield on Wednesday night and could be considered for the job permanently. “They worked hard and did a terrific job for me,” Redknapp said.

If he is brave enough, Redknapp has one more function to perform on the South Coast. He and his former players are due to receive the freedom of the city, in recognition of their FA Cup win last season, at the Portsmouth Guildhall tomorrow.