He said: "We brought in six or seven players and we got it right expect one and that was my fault.
"Rolando Bianchi, he didn't suit English football - he did OK but he was not as good as I hoped."
The Italian striker joined City for £8.8m from Reggina but struggled to settle to life in the Premier League and was loaned out to Lazio after just five months.
Every time we lost he never spoke to me for a week after
Sven-Goran Eriksson on former City chairman Thaksin Shinawatra
Leicester meet Manchester City in the third round of the FA Cup this weekend and it will be the first time Eriksson has faced his former club since he left in the summer of 2008.
Erikkson also gave BBC Radio Manchester's 'In the Spotlight' programme an insight into the then City chairman Thaksin Shinawatra and the fractious relationship he had with the former Thailand prime minister.
"I think we did well in the whole league more or less until Thaksin decided I had to go at the end of the season," he added.
"His biggest problem was that he didn't understand football at all and he didn't realise that.
"He thought football was easy and to win every game was easy, just tell the players to be aggressive and we will resolve all the problems but in football of course you don't do that.
"Every time we lost he never spoke to me for a week after but when we won it was dinner and very nice hugs and things, so it's difficult to work with people like that."
Since leaving Manchester City the Swede has gone on to manage Mexico, Notts County, and Ivory Coast at the World Cup. He is currently manager of Championship side Leicester City.
Eriksson also discusses his time as England manager, the media perception of him and his current work at Leicester City.
To hear the interview in full tune into BBC Radio Manchester on Thursday, 6 January at 1800-1900 BST on 95.1FM, DAB and online at bbc.co.uk/manchester. If you miss the show you can listen again via the BBC iPlayer.
Source: BBC Sport
Source: BBC Sport