Dalglish's poor return from the £100 million spent on signings, notably Carroll, has been cited as one of the key reasons behind his downfall in his second spell as Liverpool manager.
It appears that the Scottish coach began to lose patience with Carroll's prolonged struggle for form following his record-breaking £35 million move from Newcastle - until the final few games which pushed him unexpectedly into Roy Hodgson's squad for Euro 2012.
The book chronicles the day-to-day happenings on and off the field in City's impressive 2011-12 season , details the move by Liverpool to swap Carroll for Tevez.
Perhaps had Dalglish pulled off the swap deal it might have reinvigorated Liverpool's season and saved him from the sack, with his departure was confirmed on Wednesday.
There were rumours of the proposed move at the time of the January transfer window, yet no confirmation came to the fore. The book, however, cites a City insider substantiating that "tentative enquires" were made from Anfield.
Liverpool were willing, according to the book, to take a £10 million "hit" on Carroll and drop the valuation to £25 million, precisely the valuation being placed on Tevez to take him from City, who had insisted that a loan deal to either Milan club was out of the question.
Carroll has recently regained his form to help the Reds to the Carling Cup, but defeat in the FA Cup fFinal coupled with a disastrous league campaign put Dalglish's return to management at Anfield into the spotlight.
Dalglish's signings, with Carroll the most expensive, have particularly been under scrutiny. At the time of Liverpool's audacious move, Roberto Mancini, who had been an admirer of Carroll when he plied his trade at Newcastle, was unimpressed by his dramatic slip in form since joining Liverpool.
As it turned out, Mancini and Tevez patched up their differences, with the latter backing down with an apology for the incident on the bench in Munich in the Champions League, and returned to help the team to their first title in 44 years.
"Mancini: Diary of a Champion" is published on 28th May by Empire Publications. Call: 0161 872 3319 to order advanced copy.