Tottenham's remarkable resurgence reached new heights as they climbed to joint second in the table, just three points behind City, thanks to goals from Aaron Lennon and Benoit Assou-Ekotto.
Spurs will move joint top if they beat Wolves on Saturday - a feat that no-one would have predicted back in August when they started the season with heavy defeats to the two Manchester clubs.
Redknapp says the run of one loss in the 18 games that followed those two hammerings has injected a sense of belief in to the squad which he thinks can help his team win their first championship in 51 years.
"It's not impossible for us to win the league," Redknapp said.
"We have a chance. The players believe we have a good chance.
"I wasn't there but someone said William Gallas came in the other day and said to everyone: 'Listen, we have a chance here'.
"It's not beyond the realms of possibilty. We are in there. It's going to be hard but we are not a bad side. We have some real quality. We can play and we have a good spirit."
Spurs face a tough home game against Wolves on Saturday, but focus has already shifted to the following weekend's crunch clash against City.
Redknapp, perhaps aware of his team's struggles against the weaker teams in the league last term, is loathe to even contemplate anything to do with the game at the Etihad Stadium, however.
"We can't think about anything other than Wolves. That's all I will think about driving home," Redknapp added.
"It's all about Wolves. We have to try to beat them. That will be a difficult game. They are a tough side to beat."
Everton boss David Moyes cut a glum figure after the game having seen his team fail to test Brad Friedel once during the match.
He said: "The story tonight is Tottenham and Harry. You will probably only want two lines on Everton and David Moyes, but I understand that.
"Tottenham are doing well and so is their manager with the team they have.
"They are title contenders. They are a good team but that shouldn't take away from the fact that we did quite well tonight." Already without Phil Jagielka for the next five weeks, Moyes watched on in dismay as centre half Sylvain Distin hobbled off in the second half with a hamstring injury, leaving Everton shorn of another defender.
Moyes summed up the state of his squad by saying: "It's okay. I am going to play in the next match."
