The pair have been found not guilty of evading tax on £189,000 worth of payments made by Mandaric into Redknapp’s offshore bank account.
Redknapp, 64, said he had been through a five-year “nightmare” and said the case “should never have come to court”.
Redknapp, Portsmouth’s former manager, and Mandaric, who used to own the club, denied the charges at Southwark crown court, arguing that the money was a gesture of friendship.
They embraced in the dock when the not guilty verdicts were read out on all charges.
Now the case is over, it can also be reported that Mandaric and Portsmouth’s former chief Peter Storrie were cleared of £600,000 tax dodging claims at an earlier trial.
Redknapp said outside the court: “I must thanks the fans at Tottenham, especially the other night.
“The Wigan game was the most moving I’ve ever felt, to have the fans singing my name throughout the game while all this was going on. That will always be special to me and I will never forget that.
“Most importantly, [thanks] to my family, who have really pulled through it these last five years that this has been hanging over us. I’m really just looking forward to getting home.
“It really has been a nightmare, I’ve got to be honest. And this is a case that should never have come to court. It’s unbelievable, really.”
A Tottenham spokesman added: “Everyone at the club is delighted for Harry and his family.
“This has been hanging over him for over four years and the last two weeks have been particularly difficult.
“We are pleased to see this resolved and we all look forward to the rest of the season.”