In the end, Bellamy joined City and Palacios moved to Tottenham from Wigan.
Related ArticlesManchester City v Tottenham Hotspur: match previewRedknapp: Man City 'hijacked Bellamy'Man City v Spurs: Alan Smith's player ratingsMan City v Spurs historyCity on verge of super club status, says KakaRoberto Mancini looks for his Jesper Gronkjaer momentCity have made no public response to Redknapp's comments but are understood to be taking legal advice on whether they could be deemed to be unfairly defamatory.
Whether that will involve a formal process being launched seems unlikely, but it provides an intriguing backdrop to tonight's game, which manager Roberto Mancini has admitted could "change the history" of his club.
Meanwhile, Carlos Tevez has set aside his differences with the Italian and said he is ready to fire City within reach of a place in the Champions League tonight.
Earlier this season the Argentina international publicly criticised Mancini's heavy training schedule as well as intimating that the City board had been too hasty in their replacing of Mark Hughes prompting suggestions he was not happy at the club.
But now the 26-year-old insists that he wants Mancini to stay on at Eastlands and that the Italian manager is the right man to lead City as they look to take the step-up to play in Europe's top-flight competition.
"Of course I would really like him to continue here," he said. "I would like all of us to stay and continue with this ambitious project which we have started. The manager has given me the continuity that every player needs to produce his best. He helped me recover my confidence.
"Thanks to the coach and my team-mates, things have worked well for me this season and it's the reason I have achieved such a high level."
Looking forward to tonight's clash with Tottenham, Tevez is aware that there is a very real possibility that City will have to wait another year before they can play in the Champions League.
"We are a team that is growing together," he continued. "We are happy with what we've done so far but we know this is our greatest challenge. We know it will be tough but we'll try hard. We are very confident.
"Tottenham have a team which is no more or less than us. We are at the same level so the team that performs to their true potential will win this battle. We both need to win and time will decide who will be the winner.
"The Champions League is one of the most beautiful tournaments in the world to play in, that is unquestionable. Of course there is the possibility we will not qualify because we are just making our first steps to becoming a great team.
"Everything will happen in due time. But I like to talk about realities and maybe next season City in the Champions League will be a reality."