Manchester City feared Andy Cole was ready to quit football if the club blocked his move to Portsmouth.
Manager Stuart Pearce believes he was forced into selling the former England striker, even though he would rather have kept him at Eastlands.
City considered forcing Cole to stay until the end of his contract but backed down.
Pearce said: "There were suggestions that the player might retire if I didn't let him go. After that was suggested to me what choice did I have?
"In the terms of negotiations it was mentioned that this deal [from Portsmouth] was too good to turn down and it might be a case of the player retiring if we did not agree to the transfer.
"That came from the agent. It was a bit disappointing and as soon as you hear that then you just move on and say 'right okay'. We decided, myself, the chairman and the chief executive to take the money on the player and move on."
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