"I have always tried to create a group of players that battle hard and work together, but this time I couldn't do it," the 53-year-old Italian told Radio Nou.
"I accept complete responsibility because the team is a reflection of the character of the coach and this time I couldn't achieve that."
Ranieri was fired after his side's shock elimination from the UEFA Cup by Steaua Bucharest on Thursday, when they let slip a 2-0 first-leg lead and lost on penalties.
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Ranieri, who signed a three-year contract last June after being sacked as Chelsea coach, added that Valencia's two Spanish league titles and UEFA Cup success under his predecessor Rafa Benitez had created unrealistic expectations.
"Many people have made the mistake of thinking that Valencia can do the same as Barcelona and Real Madrid and win trophies all the time," he said.
"But I think that our aim should be to finish in the top four and, if the season goes really well, then to win a trophy."
KING'S VICTORY
Ranieri, who led Valencia to victory in the King's Cup during his first spell in charge, told the club's website he had hoped to end his career with the Primera Liga side.
"I came to Valencia because of the love I have for a great club and a great city," he said. "That's why it is such a shame that my work here has come to an end.
"I had not only hoped to complete my contract, but I had also hoped to end my career here.
"I want the supporters to know that I will always be a fan of Valencia football club."
Ranieri has been replaced by Rafa Benitez's former assistant Antonio Lopez, who also had a spell in charge of the Bolivian national team in the mid 1990s.
Lopez said his aim was to try and pick up where Benitez left off.
"My ideas are very similar to those of Rafa Benitez, that's why we worked together before," he said. "I certainly won't be lacking in hard work, dedication, devotion and commitment."
Lopez will make his debut as coach when Valencia play in-form Real Betis at the Mestalla on Sunday.
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