He was "deeply upset" that his home was raided at 0600 with press photographers in tow, when the allegations had "nothing whatsoever to do with me".
Mr Redknapp, 60, was one of five men arrested on suspicion of conspiracy to defraud and false accounting.
Among those arrested were Portsmouth's former chairman Milan Mandaric.
'Entirely different'
Mr Redknapp told a press conference that his wife had been "petrified" during the raid, which took place while he was away from home at a Champions League match in Germany.
I add a bit of a profile to the investigation 
He added that he was at a loss to explain why he had been treated in this manner as he did not believe that the matters being investigated concerned him.
The Portsmouth manager said: "I still feel I was only called in because I have a high profile. I add a bit of a profile to the investigation."
He added that he had called in his players for a meeting, and been "completely open" with them about the allegations.
He said his family were "deeply heartbroken by the situation".
He said: "It was a bitter disappointment for me and my family. We were deeply heartbroken by the situation."
And Mr Redknapp asked "why it had to be brought into the public domain when I wasn't involved in any part of it".
Another of those who were held is understood to be Charlton player and Senegalese international Amdy Faye, currently on loan to Rangers.
The City of London Police inquiry is believed to be centred on the transfer of Mr Faye to Portsmouth from the French club Auxerre, and from Portsmouth to Newcastle, deals set up by agent Willie McKay.
Paul Martin, the solicitor representing Mr Redknapp and Mr Storrie, said the inquiries did not relate to either of them. "They relate to entirely different individuals."
A spokesman for Mr Mandaric, 69, said the Leicester City chairman would "continue to offer his full and total support to the police".
Police said the arrested men were aged 69, 60, 55, 48 and 30 and had been questioned over conspiracy to defraud and false accounting.
The 69-year-old was also held on suspicion of money laundering, a spokesman said.
'Totally unrelated'
Detectives from the economic crime unit of the City of London Police are investigating allegations of corruption within football and its impact on owners and shareholders.
In July, officers raided Newcastle United, Portsmouth and Rangers football clubs as part of the inquiry.
A spokesman for Portsmouth said on Wednesday the club's chief executive and manager had "been asked to help police with their inquiries concerning a matter dating back to 2003" prior to the new owner taking control of the club in 2006.
He added the club was "fully supportive of Peter and Harry".
Rangers FC have confirmed that a player was arrested in a matter "totally unrelated" to the club.
The latest arrests bring the total number of people detained in connection with the investigation to seven.
In September, a 28-year-old man was arrested in London and in May, a 61-year-old man was arrested in Manchester on suspicion of money laundering.
A separate inquiry conducted last year by former Metropolitan Police Commissioner Lord Stevens highlighted concerns over 17 player transfers and five Premier League clubs.
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