Redknapp's £1,000 payout as police raid is ruled illegal

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The Portsmouth boss, who won the FA Cup last Saturday, was the victim of "wholly unacceptable failures", said the judges. He was awarded £1,000 in damages and a search warrant for his Dorset home was quashed.

The decision is a humiliation for the City of London Police and a high-profile inquiry into football transfers.

Redknapp was arrested in November last year when he went voluntarily to Chichester police station. Earlier his home in the wealthy Sandbanks neighbourhood of Poole was searched. Redknapp had been returning from Germany at the time after watching a Champions League match and only his wife Sandra was at home.

To Redknapp's anger The Sun had been tipped off and photographed police arriving for the raid shortly after 6am.

But today Lord Justice Latham and Mr Justice Underhill ruled the search warrant issued by the City of London Magistrates Court on information provided by the police had failed to comply with the 1984 Police and Criminal Evidence Act. In a scathing judgment, Lord Justice Latham said: "The first thing that has to be said is that the failures I've referred to are wholly unacceptable.

"This court has complained in the past about slipshod completion of application forms such as this."

Redknapp had previously offered full co-operation to detectives, the court heard.

Redknapp was not in court but his solicitor Mark Spragg said: "This was an outrageous abuse of power by the police who ignored the rulebook."

The police must also pay 25 per cent of Redknapp's legal costs leading to a total bill for the taxpayer of an estimated £50,000.

He is still on police bail in connection with the police inquiry which includes other Premiership clubs.