Meanwhile, Leicester chairman Milan Mandaric does not expect his manager Pearson to move to the Riverside.
He was paid the "bungs or offshore bonuses" by Mr Mandaric, it was claimed.
The court heard that Mr Redknapp told police Mr Mandaric had control over the account.
"They needed the transition and they are quite comfortable what they have now, " Mandaric said.
Allen was sacked on 29 August just four games into his tenure following a disagreement with Mandaric.
At the time, Foxes chairman Milan Mandaric said they had "reluctantly" allowed Pearson to move on.
Joe Royle, Graeme Souness and Peter Reid have been interviewed, but Mandaric has now turned to Holloway.
The Franco-Russian initially bought into Pompey as joint owner when he struck a deal with then-chairman Milan Mandaric.
The defendant said he had been told by Mr Mandaric there was no tax "on so many occasions".
The Thai consortium took over the club from Milan Mandaric in August 2010.
"I have had a group of people but not to buy the club or invest, " Mandaric told BBC Radio Leicester.
Mandaric revealed that it was after the game that Megson requested a meeting with the Foxes chairman about his future.
In a statement announcing Frenchman Perrin's departure, Portsmouth chairman Milan Mandaric hinted that the club would now seek a British manager.
BBC: SPORT | Football | My Club | Sheff Utd | Warnock quiet on Portsmouth link
Mandaric added the club has drawn a shortlist of candidates but said it would be unfair if he revealed any names.
Foxes chairman Milan Mandaric rejected two approaches from Bolton for the 48-year-old, who only took over at Leicester six weeks ago.
He said the team were 2-0 down to Aston Villa at half-time and Mr Mandaric tore his ticket "into 50 pieces".
Mandaric took over as owner of the club in November 2006 with the aim of taking them back into the Premier League.
The tax evasion trial of Harry Redknapp and Milan Mandaric gets underway.
FORBES: January 2012 Revisited - Transfer Window Opens And Bad Boys In Trouble Again
Mandaric will end his time at the Foxes after Monday's game against Nottingham Forest, allowing Asia Football Investments to assume complete control.
He and ex-Portsmouth chairman Milan Mandaric, 73, deny cheating the public revenue.
BBC: Harry Redknapp arrives at Southwark Crown Court on 2 Feb
Saints have rejected an initial approach from Pompey chairman Milan Mandaric to speak to Redknapp, who left Fratton Park acrimoniously a year ago.
Megson will be the Foxes' fifth manager in 18 months and the fourth since Milan Mandaric took control of the club in February.
But Mandaric insists that he ensured the new Thai owners were completely ready to take control before he agreed to move on.
Holloway is understood to be Leicester chairman Milan Mandaric's top target to take the reins following Gary Megson's departure for Bolton last month.
The Foxes are languishing in 17th place in the Championship but chairman Milan Mandaric believes the new man will bring about a revival.
The prosecution said that during a police interview, Mr Redknapp said Mr Mandaric had told him that the Monaco investment had been "wiped out".
He said Mr Mandaric "wasn't a man to argue with" and that he "never had a clue" how much money went in the account.
"We are looking for strong characters to stabilise the team and see how far they can go, " Foxes chairman Milan Mandaric told BBC Radio Leicester.
It is the first big breakthrough for Mandaric in his bid to find the man who can lead Portsmouth out of trouble in the Premiership.
BBC: SPORT | Football | My Club | Portsmouth | Mandaric admires Warnock passion
Holloway, the club's sixth manager since Milan Mandaric took over as chairman in February 2007, must ensure his players do not dwell on defeat to the Owls.
应用推荐