Levy claims the Bulgarian striker went on strike in order to secure that his move to Manchester United went trough.
“We had a player who had refused to play two games for us, having a detrimental affect on the dressing-room,” said Levy.
“We’d known for a year that the player had wanted out of this club.”
He added: “We were very disappointed.
“Dimitar Berbatov was a player who we brought to this club at a time when Man Utd were interested in him.
“He made a conscious decision to come to this club, we invested a lot of money, nobody had ever heard of Dimitar Berbatov when we bought him.
“A year later with 10 days to go to the end of the window he tells us he wants to leave to go to Manchester United.”
Berbatov joined United from Tottenham on transfer deadline day for £30million.
“I don’t think he treated this club with the respect that we honestly deserved,” Levy explained.
“We put him on the map, I think he’s an outstanding player, but he signed a long-term contract with this club and I think he should have stayed.
“I had so many conversations with him. He kept saying it was about his ambition to play for Manchester United. It wasn’t a money issue. We offered him a new contract and he wasn’t even interested in discussing it.”