Gerard Houllier named him as Liverpool captain at the start of 1999/2000 but a knee injury meant he was not able to play a part in the treble winning season of 2000/1. However, he did go up to receive the FA Cup at the insistance of Robbie Fowler and Sami Hyypia.
Redknapp left Liverpool for Spurs before joining his father at Southampton where he was unable to keep the Saints in the Premiership.
Harry Redknapp said: "Jamie has been forced to stop playing, otherwise he could have ended up a cripple.
"He was getting through games last season on pain-killing injections. It's been a hard decision but following medical advice he has had to put his long-term health first.
"He wants to stay in the game and take his coaching badges but I'm sure he will also have plenty of offers for TV and media work."