The European giants are booked into Fratton Park on November 27 having yesterday been drawn in the Blues' UEFA Cup group.
Also on the agenda are Braga, Heerenveen and Wolfsburg in the next round, which kicks off on October 23.
But it's the visit of the Italian side which has captured the imagination and got Pompey fans licking their lips in anticipation of an historic clash.
In truth, there was disappointment among many when the home and away ties were decided by UEFA immediately after the draw.
Instead of a tantalising trip to the San Siro for the clash, football chiefs agreed Milan would visit the south coast for Pompey's second match.
>>> AC Milan will define glorious Pompey era - read Burton's Banter by clicking here.But Redknapp believes the chance of watching AC Milan at Fratton Park is a once in a lifetime opportunity.
And he is relishing the chance for the fans to see the seven-time European champions at close range.
He said: 'It's a great draw for the club, it really is. Absolutely fantastic.
'I think most of the fans would have loved to have gone to the San Siro and that would have been great for everybody
'I would have loved the chance of taking a team there myself.
'But the good thing is that the fans who wouldn't have been going can now see AC Milan at Fratton Park.
'The fans can come to Fratton Park and see an outstanding team like that playing at close range.
'That is fantastic for them and they deserve it.
'Who would have thought a few years ago that this club would have been playing AC Milan?
'Who would have thought we would have four players in the England squad?
'Nobody could have predicted this in their wildest dreams but now we're seeing it.
'A team like Milan coming here – superb.
'And there will be as many of our supporters as possible to see that.'
Regardless of the draw, Milan rank as the favourites to take what promises to be a hotly-contested UEFA Cup this season.
With stars such as Ronaldinho, Kaka, Maldini, Pirlo and Shevchenko, they are dripping with star quality.
But Redknapp is refusing to underestimate the talents of the remainder of Group E – including Pompey.
He added: 'Milan are an outstanding team, no doubt about that.
'But the rest of the teams in the group are also dangerous, you can't ignore the rest of them.
'Looking at our group, I still feel that we have got a chance to qualify.
'The league is always my priority. We are going well again after a tough start this year. But AC Milan in a European competition is a one-off occasion. That should be a fabulous night.'
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The full article contains 504 words and appears in The News newspaper.