The 22-year-old’s wage demands scruppered his proposed move to Liverpool and the Iceland international instead ended up joining Tottenham.
“He wasn’t playing at Hoffenheim, I brought him to Swansea and he did very well for me there, scoring seven goals in 19 games and was very good,” said Rodgers.
“He and I both sat and spoke and believed that playing football was going to be the most important aspect for him.
“But obviously it was important financially so we agreed a deal for him to go to Swansea and that was wrapped up.
“I then became the Liverpool manager and that then wasn’t something that was going to happen at Swansea so he then had a choice of where he wanted to go.
“I knew what the market was and I wasn’t prepared to pay anything over what I had known was agreed before.
“Liverpool would have provided Gylfi with a wonderful opportunity to perform with a manager that he knows and at a club which is a real footballing institution.
“But he’s decided to go to Tottenham, for whatever reason.
“I wish him the best, he’s a good kid and there’s no ill feeling. We’ve got other targets and we’ll move on.”