The 64-year-old has transformed Spurs' fortunes in just over three years at the club and been tipped as favourite to follow Capello when the Italian leaves the post at the end of next year's European Championships in Poland and Ukraine.
Levy also told shareholders at an Annual General Meeting that Tottenham should never have got involved in bidding to take over the Olympic Stadium after next year's London Games, hinting they were used as a "stalking horse" for West Ham United's successful bid.
He said Redknapp - who has said it would be difficult for any Englishman to turn down the national job - was totally committed to the club, although his words left queries about the manager's options next year.
"Harry has 18 months left on his contract. We have had a conversation and as far as Harry is concerned he is very happy here and that he doesn't particularly want to consider England at the present time," said Levy.
"We will worry about that situation if it arises in the summer."
When Redknapp joined Spurs in October 2008, they were bottom of the Premier League. Under his guidance they qualified for the Champions League, reaching the quarter-finals last season, and are currently in the chase for their first League title since 1961.
The former West Ham United, Portsmouth and Southampton manager has recently undergone some minor heart surgery, while he has a court appearance scheduled for next month regarding tax matters.
Levy implied Spurs were duped into bidding to take over the Olympic Stadium after the Games next year.
Tottenham are now forging ahead with plans to build a new 66,000-seater stadium close to White Hart Lane, although funding remains an issue.
Levy told shareholders: "We were certainly encouraged to bid for the stadium, but knowing what we now know in terms of the government's requirement to retain the [running] track, if we'd known that at the beginning we would not have bid."
He said the club had delisted its shares from the stock market to go private as the move gave the club more flexibility to raise the finance they need to develop their stadium.
"Failure is not an option," he added.
