Spurs were in talks with Juventus during the deadline day of the transfer window for a loan deal on the Serbian, but the27-year-old was insistent for a longer contract.
Redknapp admitted that Krasic, who joined the Serie A outfit for 12.4 million pounds in 2010, was too expensive for Tottenham to afford.
"I was going to take Krasic on loan. I was interested in buying him a year ago too but he was expensive - 15m pounds," he told Sky Sports.
"I wanted him on loan this time but he didn't want to come and wanted a permanent deal but we didn't have the money."
The former CSKA Moscow player was seen as possible competition for Gareth Bale and Aaron Lennon after Steven Pienaar's departure to Everton on loan.