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."
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."
"Failure is not an option," he added.
