The England skipper ran the show from the middle against the USA yet was farmed out to the left for the Algeria game.
Redknapp said: "You have to play people in their best positions.
"I think Steven Gerrard is a central midfield player. Play him off of Rooney, get him in the middle.
"The one thing you wouldn't want to do is play him wide on the left. The balance is wrong when he plays out there.
"I'd get him back in the middle where he's at his best. It's not rocket science."