Levy stepped down on Thursday after urgings from the club's owners in the morning.
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“Absolutely out of the blue. I never saw that coming at all,” Redknapp told talkSPORT.
“I thought Daniel would be there forever. When someone texted me I thought no, you’re having a wind-up.
“That was his life running that football club, I could never see it coming to an end.
“I never had any problem with Daniel,” Redknapp added. “I sit here and I don’t have any relationship with him or speak to him, not that I don’t want to.
“I found him very good to work for. He wasn’t at the training ground every day. He wasn’t poking his nose in as to who should and shouldn't play.”