Modric was keen to leave Spurs during the transfer window after being the subject of bids from Chelsea, but Levy repeatedly insisted that the Croatia international was not for sale.
The 25-year-old was affected by the speculation, but Redknapp feels Modric can now focus on playing following the closure of the transfer window.
Redknapp is also anticipating talks regarding an improved contract for Modric, who is already tied to a long-term deal at White Hart Lane.
"Luka will just get on with it - the chairman will sit down and discuss his contract and make a deal," said Redknapp.
"We are looking to make him a good offer. The transfer window being shut now makes my job easier because he has to just get on with playing."
Redknapp also confirmed that Giovani dos Santos rejected the opportunity to join Udinese in the summer as he was holding out for a move to Sevilla.
Dos Santos recently revealed he was disappointed and angry that he failed to secure a switch to Sevilla, but appeared as a late substitute in the victory at Wolves.
"Gio wanted to move but we couldn't let him go," said Redknapp.
"We had a £13m offer from Udinese with £10m down and the rest in do-able bonuses with a big sell-on, but he wouldn't go.
"He wanted to go to Seville who were offering around £3m. You can't blame the chairman for not letting him go. Gio is a talent with a big part to play.
"Only him and Luka are here now out of the lads who wanted to leave."