Spurs have confirmed that their central defender is facing up to eight weeks on the sidelines after he had to be stretchered from the pitch during England's Euro 2012 qualifier against Bulgaria at Wembley on Friday evening.
Dawson will now miss a significant portion of the Premier League season and also the start of the north London club's inaugural Champions League campaign.
"The boy is absolutely devastated. It is a massive blow for him and the club," Redknapp told the Sunday Mirror.
"I'd like to say something positive about the situation, but other than we initially thought it was a lot worse and he could be out for the season, what can I say?
"We have no idea what is going to take longer to heal, his ankle or his knee. But we are talking months, not weeks.
"It couldn't have come at a worse time for us with crucial games coming thick and fast.
"I'm gutted for him at a time when he has quite rightly been given a chance to stake a claim for regular first-team football for England.
"As for Spurs, words fail me. He is the heartbeat and soul of this club.
"But thank God I went and got William Gallas on a free transfer. It's looking an even better deal now."
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