EXCLUSIVE: He's deranged - O'Leary rages at Ridsdale 'smears' over bung agent

Ridsdale, one-time Elland Road chairman, is about to publish an explosive new book, United We Fall, which attempts to shift the blame to O'Leary for the club's descent into financial chaos and relegation to League One.

Scroll down to read more:

Fuming: David O'Leary

In particular, he alleges that O'Leary was in some way responsible for the huge payments he authorised to agents, most notably the £1.75million that disgraced agent Rune Hauge received as part of Rio Ferdinand's £18m move from West Ham to Leeds in November 2000.

But on a day when Sportsmail reveals documents that expose glaring inconsistencies in the current Cardiff chairman's claims, O'Leary hits back as he emerged as the favourite to become the next Republic of Ireland manager.

O'Leary, who has already consulted his lawyers with a view to taking legal action against his former employer, is disgusted by the attack when all previous allegations made against him by Ridsdale were withdrawn in the settlement document that was signed in the wake of the Premier League arbitration agreement.

In that agreement, Ridsdale and, indeed, Leeds expressly disassociated themselves from the allegations that were made at the time and O'Leary received £4m in compensation after being sacked in May 2002.

"I signed a confidentiality agreement, which was incorporated in a Premier League tribunal order, and so did Leeds," said O'Leary.

"I have honoured that but I now feel compelled to defend myself against this deranged man.

"My dad rang me the other morning to tell me what had been written as part of the book serialisation in a paper.

"My parents have experienced the highs and lows of my career but the headline was very upsetting. To say I'd made a 'secret deal with a bung agent' is outrageous. It's nothing but a smear campaign."

As O'Leary pointed out, the timing of the attack could not be worse. "Do I want to get back into football? Definitely," he added. "Is this going to help me? No.

"What amazes me, though, is how Peter was with me when he was out of work. Not only did he call me to say that he had recommended me to Doug Ellis when I got the Aston Villa job but he asked me to recommend him to my chairman when the chief executive's job became available.

"That made me think, for all we'd been through at Leeds, that he was still a friend.

"I will always feel I did a good job at Leeds. We finished fifth in the Premiership the summer I was sacked. I remember walking off the pitch and Peter was waiting for me to congratulate me on another good season.

"People would go on about me spending £90m when the real figure was nearer £50m. And look how much the top four clubs are spending today to get into the Champions League."

O'Leary is furious with Ridsdale's suggestion that he lost the dressing room. "I left Leeds in a good situation," he said.

"In his book, Peter says I lost the dressing room. There were players who were unhappy but they knew their days were numbered under me.

"Peter highlighted a problem with Paul Robinson and he was wrong to do that.

"Since I left Leeds I have been to Robbo's wedding and stayed as a guest at his house in London. My daughter, Ciara, has been a babysitter for them.

"When I was at Villa and Paul was still at Leeds, he wanted to sign for me there. It was only because Doug Ellis wouldn't come up with the money that the deal fell through.

"The implication that I might have taken a bung is what really upsets me.

"I'm prepared to undergo any kind of scrutiny because I know I have done nothing wrong and I will not allow anyone to accuse me of being a fella who takes a bung."