HARRY Redknapp said he had been through a five-year "nightmare" after he was cleared of taking bungs in an offshore tax dodge.

Bookmakers immediately slashed the odds on the Tottenham Hotspur manager becoming the next England boss, further shortened by the shock resignation of Fabio Capello last night.

Jurors accepted Redknapp's angry denials over taking untaxed £189,000 bonus payments in a Monaco account.

His acquittal alongside co-defendant Milan Mandaric blows the final whistle on an £8 million police investigation that failed to yield a single conviction.

Mandaric and former Ports- mouth FC chief executive Peter Storrie were also cleared of £600,000 tax dodge charges at a previous trial, it can be reported for the first time.

Redknapp and Mandaric hugged as the jury cleared them on all counts.

Outside London's Southwark Crown Court, Redknapp, flanked by his son Jamie, said: "It really has been a nightmare, I've got to be honest. It's been five years and this is a case that should never have come to court because it's unbelievable really.

"It was horrendous, you know, but it was a unanimous decision. The jury were absolutely unanimous there was no case to answer. I'm pleased now we can go home and get on with our lives."

Redknapp paid tribute to his family, his legal team and Tottenham officials. And he said he would "never forget" the backing of the Spurs fans.

Former Liverpool star Jamie Redknapp, who stood by his father throughout the trial, said: "I'm just glad it is all over."

Mandaric told reporters: "I've got to go somewhere to try to pinch myself and wake me up from that horrible dream I had in the past. As we said in the statements, I always believed in the truth, and always believed in the British justice system."

Redknapp was at times moved to the verge of tears in court as the Crown alleged he told a pack of lies to get off the hook.

However, jurors accepted Redknapp and Mandaric's evidence the Monaco account in the name of Redknapp's dog, Rosie, was nothing to do with footballing matters.

The verdicts mark a disastrous end of an exhaustive inquiry into football corruption by the tax authorities and City of London Police. The case served up high courtroom drama over two weeks as Redknapp appeared in the dock and gave an impassioned display in the witness box.

He accused Detective Inspector Dave Manley of "staring" and shouted at prosecutor John Black, QC: "You think I put my hand on the Bible and told lies? That's an insult, Mr Black. That's an insult."

Redknapp said he was "a fantastic football manager, not a hard-headed businessman" and had always paid too much tax.

He also revealed he had squandered millions in bad investments and had the writing ability of a two-year-old.

Entrepreneur Mandaric, who was chairman of Portsmouth when Redknapp was club manager, claimed he had paid £100m in taxes during his time in football, adding: "Did I suddenly go crazy?"

Mandaric and Redknapp embraced in the dock as the verdicts were read out after five hours of deliberations.

Redknapp immediately left the court, while Mandaric walked up to DI Manley to shake his hand and say "Thank you".

Judge Anthony Leonard made no comment other than to discharge the jury.

DI Manley made no comment other than saying: "I accept the court's decision".

Detective Superintendent Bob Wishart said in a statement issued later: "City of London Police respects the verdicts of the jury. Officers will sometimes uncover evidence of potential tax offences, which we will pass on to the HMRC. We have supported the HMRC throughout this investigation and will continue to work closely with them in the future."

Chris Martin, of HM Revenue and Customs, said: "We have no regrets about pursuing this case because it was vitally important the facts were put before a jury for their consideration. We accept the verdict of the jury but I would like to remind those who are evading tax by using offshore tax havens it always makes sense to come forward and talk to us before we come to talk to you."

Speaking outside court, Redknapp said he would "never forget" the support of the Spurs fans and mentioned in particular the match against Wigan on January 31 when fans were singing: "There's only one Harry Redknapp." He said: "For me personally to have them singing my name throughout the game while all this was going on will always be special to me. I'll never forget that."